Article:
The recent 1st Ministerial meeting of the India-European Union Trade and Technology Council (TTC) in Brussels, Belgium has brought numerous insights about the cooperation between the two entities. This platform aims to tackle strategic challenges at the nexus of trade, trusted technology, and security. The two entities are also working together to resolve a looming trade issue regarding the E.U.’s Carbon Border Adjustment Mechanism (CBAM).
Understanding the India-EU Trade and Technology Council
The formation of the TTC was announced by the Indian Prime Minister and President of the European Commission in 2022. The council’s goal is to create a high-level coordination platform to handle strategic challenges related to trade, trusted technology, and security.
The TTC holds annual ministerial meetings, ensuring regular high-level engagement between India and the EU. Meetings will alternate between locations in India and the EU, promoting balanced participation and strengthening bilateral cooperation.
Working Groups of the TTC
The TTC consists of three Working Groups that report on roadmaps for future cooperation. The first group focuses on strategic technologies, digital governance, and digital connectivity. This includes areas like digital connectivity, Artificial Intelligence, 5G/6G, cloud systems, cybersecurity, digital skills, and digital platforms.
The second group focuses on green and clean energy technologies. It examines investment and standards in green technologies with emphasis on research and innovation. Potential areas of interest could include clean energy, waste management, recycling of batteries for e-vehicles, and more.
The third group looks at Trade, Investment, and Resilient Value Chains. It addresses resilience of supply chains and access to critical components, energy, and raw materials.
Significance of the TTC
Given the evolving geopolitical landscape, both India and the EU understand the importance of establishing a robust collaborative framework. The TTC doesn’t just offer political guidance, but also provides the necessary structure to implement political decisions and coordinate technical endeavors. It aims to boost EU-India bilateral trade, which was worth Euro 120 billion in 2022.
Why is the EU Significant for India?
The EU works closely with India to promote peace, create jobs, enhance economic growth, and drive sustainable development across the country. It is India’s second-largest trading partner and export market. Trade in services between the two reached 40 billion Euros in 2021. The EU-India cooperation has evolved from traditional financial assistance to partnership with focus on common priorities.
About the European Union
The European Union is a union of 27 nations that function as a united economic and political block. Out of these, 19 countries use the Euro as their official currency. The aim of the EU is to form a single European political entity to prevent warfare among European countries.
Previous Year Questions on this Topic
In the UPSC Civil Services Examination of previous years, two questions have been asked related to this topic. One in 2017, about the ‘Broad-based Trade and Investment Agreement (BTIA)’, and another in 2010, about the difference between the European Commission and the European Council.