New Delhi: Nudging India and Pakistan to sort out their differences peacefully, the European Union (EU) today (Nov 29, 2003) came out strongly against use of terrorism to achieve political goals, even as it described the ceasefire on Indo-Pak borders as a "further step" to normalise bilateral ties.

On its part, New Delhi emphatically stated that there could be no negotiations with Pakistan until cross- border terrorism stopped.

After extensive parleys with the Indian side led by Prime Minister Atal Bihari Vajpayee, European Commission president Romano Prodi told a press conference, "Our position is that we are simply pressing India and Pakistan to reach a peaceful agreement."

In a joint statement issued at the end of the fourth India-EU Summit in New Delhi, the two sides emphasised the "unacceptability of use of terrorism in pursuit of political goals".

"The EU welcomed the ceasefire recently agreed upon between both parties as a further step towards the normalisation of India-Pakistan relations," the statement said.

The two sides agreed on an 18-point agenda for action, including increased cooperation to counter global terrorism and intensify steps to promote peace, stability and reconstruction of Afghanistan and Iraq.

An agreement on a 14.1 million Euro EU-India trade and investment development programme and another on customs cooperation were signed by the two sides in the presence of the Prime Minister and EU leaders.

The two sides have also decided to have a maritime transport agreement, which would help modernise Indian maritime industry, reduce shipping time and costs and provide stability for economic operators.

The customs cooperation agreement would improve trade facilitation and fight against fraud related to the Indian and European legislation by providing a legal basis for mutual administrative assistance.

The two sides decided to step up efforts to double bilateral trade to $ 50 billion and work for an early launch of 30 million Euro scholarship programme for the masters and doctoral level to promote academic networking.

Vajpayee said India was looking for a "vibrant partnership" with the EU. Both sides share similar views on international issues and there was need to coordinate more closely, he said.

The agenda for action envisages continued high-level dialogue on multilateral trade issues. It also seeks to enhance cooperation in the areas of data protection and cyber security in the information society sector.

Italian Prime Minister Silvio Berlusconi, who was unable to travel to India for the summit due to gastrointestinal problem, will undertake the visit as early as possible, Vajpayee said.

PTI