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UPDATE 2-EU sued over secrecy in India trade talks

Published 02/15/2011, 11:42 AM

* Activists challenge secretive EU trade negotiations

* EU withheld details of export plans shared with industry

* Commission says needs to protect foreign relations

(Adds comment from European Commission)

By Juliane von Reppert-Bismarck

BRUSSELS, Feb 15 (Reuters) - Transparency campaigners sued the European Union's executive on Tuesday for withholding documents on trade talks with India, stepping up pressure on the bloc to make its policymaking less secretive.

The lawsuit, lodged with the EU's second-highest court, accuses the EU Commission of breaking transparency and democracy rules by refusing to disclose to campaigners details of plans shared with EU industry on how to open Indian markets.

"Industry lobbies enjoy massively privileged access and influence in trade negotiations, even when there are concerns from other quarters that this is threatening Indian labour rights and access to medicines," said Pia Eberhardt, campaigner for Corporate Europe Observatory, which lodged the complaint.

India is expected to complete a free trade deal with the EU this year, but activists worry a pact could limit its production of cheap, generic HIV and anti-malaria drugs.

They are also worried that opening India's retail sector to international supermarkets could put Indian vendors and small shopkeepers out of business.

The case, lodged with the European General Court, focuses on the Commission's refusal over 18 months to give campaigners full access to email exchanges and notes from meetings with EU governments and business groups about how to export more pork, poultry, medical equipment and car tyres to India.

The Commission deleted key passages before giving the notes to the Observatory, citing rules to protect international relations, according to documents obtained by Reuters.

"If the Commission has already shared information with the business world at large, the same information cannot suddenly become confidential when a public interest group asks for it," Eberhardt said.

The lawsuit says the Commission sent full notes to lobby groups like BusinessEurope, the largest EU employers' grouping.

"The European Commission is committed to working as openly and transparently as possible and we support the public's right to know. It is clear that all negotiations require a degree of confidentiality to ensure such a process can move forward," said Commission spokesman John Clancy.

The Commission regularly seeks input from industry and civil society, he added.

BusinessEurope was not immediately available to comment.

In a handwritten note included in the suit, former EU trade chief Peter Mandelson invited BusinessEurope to share sensitive information with India's main business group. The lawsuit argues this voids claims of confidentiality.

EU institutions are under increasing pressure to lift the veil of secrecy shrouding much of their decision-making.

More than 240 campaigners and journalists this month asked the European Parliament to act against a Commission plan to tighten laws on access to information.

The Commission has cited the protection of international relations in its refusal to reveal details of meetings between EU officials and representatives of European pharmaceuticals companies including Sanofi-Aventis and GlaxoSmithKline, the Observatory said. (Reporting by Juliane von Reppert-Bismarck; additional reporting by Eva Dou, editing by Rex Merrifield/Maria Golovnina)

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