In view of the upcoming Cancun WTO ministerial, the meeting assumes significance as multilateral trade issues including resolution of TRIPS and public health, agriculture and Doha development agenda had hit a road block in the recent mini-ministerial in Tokyo.

"The picture was a bit dark after Tokyo mini-ministerial in terms of reaching a consensus in time for Cancun ministerial in September," an EU official said, adding that Lamy's two-day visit to India would provide an opportunity to bring about a greater convergence between EU and India on some other important issues.

India is likely to utilise the opportunity to take up some of the contentious bilateral issues including the relaxation of textile quotas and problems linked to sanitary and phyto sanitary measures as well as higher GSP concessions to Pakistan.

The bilateral trade between India and EU is put at around $20 billion annually and the two have decided to double it by 2008.

The European Union has recently formulated a draft proposal on services negotiations, which is believed to have adopted a more flexible approach regarding movement of natural persons in line with India's demand.

Lamy is expected to press for a greater market access for European wines and spirits as well as explore the possibility of having a maritime transport agreement with India.

Though, EU had welcomed the reduction in customs duty on liquor imports in the Budget, it was of the view that much more was needed to be done in this regard.

The basic customs duty has come down to 166 per cent in the Budget but the overall customs duty and the state taxes were still high ranging between 230 and 500 per cent making import of cheaper varieties of liquor expensive.

The very fact that Lamy has started visting India once a year indicates the importance EU attaches to India in the multilateral trade negotiations, as New Delhi is seen as an effective voice of the developing countries.

Apart from his meeting with Jaitley, EU Trade Commissioner would have parleys with Agriculture Minister Ajit Singh, Deputy Prime Minister L K Advani and Finance Minister Jaswant Singh.

He would also meet senior Congress leader Manmohan Singh and participate in an interactive session with FICCI, CII and civil society.