In a recent event garnering attention, India and the European Union (EU) held their 15th annual summit after a hiatus of over two years due to trade and investment disagreements. The meeting marked the endorsement of “India-EU Strategic Partnership: A Roadmap to 2025”, a common roadmap devised to guide joint action and fortify the Strategic Partnership for the next half-decade.
Shared Values and Common Interests
Both India and the EU are considered “unions of diversity”, upholding values of democracy, rule of law, and human rights. They share a mutual conviction regarding the preservation of the rules-based international order and effective multilateralism. Moreover, each party has a common interest in the other’s security, prosperity, and sustainable development, leading to potential combined contributions towards a safer, cleaner, and more stable world.
Trade and Investment Dialogues
India and the EU have mutually agreed to initiate a high-level trade dialogue aimed at fostering progress on trade and investment agreements that are balanced, ambitious, and mutually beneficial. The dialogue also aims to address trade irritants and discuss supply chain linkages. Furthermore, talks have been initiated for a comprehensive Free Trade Agreement (FTA). Despite initial stalling in 2013 due to disagreements, discussions are now back on track.
Civil Nuclear Cooperation
An agreement was signed between the European Atomic Energy Community or Euratom and the Department of Atomic Energy, India. The agreement will emphasize research and development cooperation for peaceful uses of nuclear energy and on novel ways of using this form of energy.
Defence and Security Cooperation
Expansion of defence and security ties were also part of the discussions. This included the initiation of a new maritime security dialogue, consultations on crisis management, and bolstered cooperation between the Indian Navy and the European Union Naval Force Atalanta. Concerns over the recent India-China border standoff on the Line of Actual Control (LAC) were also raised.
Efforts Against Organised Crime and Terrorism
India’s Central Bureau of Investigation (CBI) and Europol launched negotiations to combat organised crime and terrorism. Both parties resolved to intensify cooperation to tackle terror and its financing, radicalisation, and the misuse of the internet for such activities.
Circular Economy and Resource Efficiency
A joint declaration on circular economy and resource efficiency was discussed. A circular economy is an economic system aimed at decreasing waste and sustaining the continual use of resources.
Science and Technology Cooperation
The renewal of a science and technology cooperation agreement and ramping up cooperation in environment and climate change comprise further negotiations between the two bodies.
Roadblocks and Issues
Despite these positive developments, certain issues persist. The EU is critical about India’s tariffs, its service sector’s openness for European Companies and about India ending investment treaties with 25 EU member states. Furthermore, the EU has shown concerns over India’s recent changes concerning Article 370 in Jammu and Kashmir and the Citizenship Amendment Act.
A Suggestive Way Forward
A comprehensive trade agreement that brings in strong rules, removes trade barriers and opens up free markets could prove beneficial for both parties. Additionally, by addressing the mutual trust deficit and facilitating people’s mobility and connectivity, possibilities for innovation and growth can be created. A partnership in the health sector leveraging India’s vast drug manufacturing capabilities and the EU’s technical expertise could also be explored. Cooperation in Information Communication Technology is another promising area for mutual growth and strategic autonomy.
