Belgium alongwith the European Union have sought India’s help assistance in resolving the current financial crisis by helping to build ?a new global financial architecture?.

The visiting Belgian minister for foreign affairs and foreign trade, Karel De Gucht speaking at a luncheon session hosted by three apex industry bodies ? FICCI, CII and Assocham ? in Capital on Tuesday said ; “It is the duty of the policymakers, our duty, to create a better functioning and a more equitable financial governance structure. Belgium and the European Union are ready to cooperate with India in this essential and urgent task.”

He informed that the European Council in Brussels agreed to the proposal that “the reforms necessary to create a global financial system for the future must be developed and agreed internationally through a process involving all of the key actors” and he qualified that India was a key actor.

The King of Belgians, Albert II is leading a high level delegation to India to work out areas for bilateral cooperation in trade, investment and economic delegation. Three contracts and MoUs were signed between Belgian and Indian companies. One contract was signed by Universite libre de Bruxelles and India Institute of Management, Ahmedabad for cooperation in microfinance.

The Indian commerce minister, Kamal Nath in response said “International Monetary Fund needs to re-invent its role in the global financial order.”

Gucht said that the world has changed much aftermath Second World War with market economy now prevailing and state-run economies not just endangered species, but actually on the verge of extinction. “As we witness wave after wave of globalization, we see in the rise of Asia a tremendous shift in the balance of economic power in the world,” he said and added that Belgium would support India’s bid for a permanent seat in the enlarged United Nations Security Council which was long overdue.

“Our new governance structures must reflect the present day political, economic and social realities. At the same time they must be efficient to tackle the challenges ahead,” he said.

He vowed to join hands with India in fighting poverty, combating climate change and fight against terrorism. Belgium, he said had committed to spend 0.7% of its GDP as public development assistance. “India’s National Action Plan on Climate Change and the EU’s emissions reduction target of at least 20% by 2020 are ambitious but reachable goals we have set for ourselves,” he said

Gucht emphasized the need for reviving the stalled Doha Development Agenda negotiations in the WTO with a view to boost trade as well as the general confidence of the public at the moment when the markets seemed to be in a negative loop.

Indian commerce minister Kamal Nath said that India was not the cause of the global slowdown but can be part of the solution. Globalised economy may not be inter-dependant, but definitely inter-connected, he said and added India can negotiate commerce and not livelihood security. The developed countries should ensure healthy economy in developing world.

India is the largest trading partner of Belgium outside EU and in this context, Nath urged Belgium to expand the bilateral trade. “Belgium will need Indian professionals and a facilitated visa regime would help. Belgium should take the initiative for India-EU trade and investment,” he said.

The bilateral trade between the two countries during 2007-08 was $8.6 billion representing a growth of 13% over the 2006-07 trade which stood at $7.6 billion. As regards FDI inflows from Belgium into India, Belgium ranks 23rd and inflows during 1991 to December 2007 were $200 million. The investments have been mainly in the areas of energy, infrastructure, software, biotechnology, telecommunications, auto parts, drugs & pharmaceuticals, shipping and logistics.

Nath mentioned about the EC proposal on increasing the CVD on cotton type bed linen by expanding the scope of the exercise by including other schemes also. He informed the Belgian minister that India was concerned about this move and Belgian intervention in the matter with the EC would be required to resolve the same.

India’s major items of exports to Belgium are natural pearls, iron and steel, organic chemicals, apparels, marine products, tobacco and plastics. India’s major items of imports from Belgium are iron and steel, nuclear reactors, plastic article, electronic machinery, optical and surgical instruments.