India-EU talks again
The Ministry of Commerce and Industry said in a statement that, apart from the free trade agreement with the European Union, negotiations have also been initiated for a stand-alone Investment Protection Agreement (IPA) and Geographical Indicators (GI) agreement. According to the report, the first round of free trade agreement talks between India-EU is scheduled to begin in New Delhi on June 27.
How important is it for India?
If India manages to negotiate a ‘Free Trade Agreement’ with the European Union, it will be one of the most important ‘Free Trade Agreement’ for India, as the EU is India’s second largest trading partner after the US. Is. India-EU trade trade registered an all-time high-value of $116.36 billion in 2021-22, registering a year-on-year growth of 43.5 percent. India’s exports to the European Union grew by 57 per cent to $65 billion in FY 2021-22. And it is the European Union, with which India’s trade is going positive, that is, India sells more than buys goods from the European Union. Therefore, if talk is made on a free trade agreement, then it will be a very important success for India.
Negotiation reached in May
During the meeting between India-EU leaders held in Porto on 8 May 2021, both agreed to resume negotiations on the Free Trade Agreement, which seeks a balanced, ambitious, comprehensive and mutually beneficial Free Trade Agreement. It was resolved to resume talks in Disha. Simultaneously, a separate agreement was entered into for settlement of Stand-alone Investment Protection Agreement (IPA) and Geographical Indicators. India’s Ministry of Commerce and Industry said that “the two partners are now resuming FTA negotiations after a gap of almost nine years as the first round of talks was abandoned in 2013 due to differences in the scope and requirements of the deal”. ‘.
EU President was on India tour in April
Let us tell you that in April 2022, the President of the European Commission, Ursula von der Leyen had visited New Delhi and during this time she met the Indian Prime Minister Narendra Modi and since then there were possibilities that India and the EU Negotiations on the free trade agreement between The talks between the two leaders helped define a clear roadmap for the talks. India and the European Union, as equal partners, both support the same fundamental and democratic values and are the largest open market economies, allowing trade deals to diversify and secure supply chains, promote economic opportunities for businesses Giving will help.
What will the conversation be like?
During this interaction, the two will also discuss resolving the issue of access to markets, which are hindering bilateral trade. Whereas, these talks, the proposed IPA will provide a legal framework for cross-border investments to enhance investor confidence. At the same time, the GI Agreement is expected to establish a transparent and predictable regulatory environment to facilitate trade in GI products including handicrafts and agri-commodities. According to the report, both sides are trying to reach an agreement on all the three agreements during this meeting, which runs from June 27 to July 1. Since India has signed a free trade agreement with Australia and UAE this year in a record time and at present, talks are going on very fast on FTA with Britain and Canada, so it is believed that the Indian government talks in a positive manner. going to the table. According to experts, the FTA talks are part of India’s broader strategy to forge balanced trade agreements with major economies and reform existing trade agreements to improve trade and investment.