Free Trade Agreement India European Union

Relations between the Republic of India and the European Union are currently established by the 1994 EU-India Cooperation Agreement. The EU is an important trading partner of India and both sides have been trying to negotiate a free trade agreement since 2007. [1] In the 2018/19 financial year, bilateral trade between the EU (excluding services) amounted to $104.3 billion. [2] Vietnam, which is becoming a huge competition for many economies, has already signed a trade pact with the EU. As governments around the world increasingly reset their approach to trade agreements amid the coronavirus pandemic, the Narendra Modi government is stepping up efforts to renew India`s trade relations with the rest of the world by revising its free trade agreement or strategy for a free trade agreement or free trade agreement. These include reviewing and renegotiating existing free trade agreements with ASEAN, Japan and Korea, as well as strengthening trade alliances with the European Union, the United Kingdom, the United States and Australia. France, Germany and the United Kingdom together account for the majority of EU-India trade. [5] However, as a result of the video conference, there was no discussion of the timing of a free trade agreement that has been under discussion for several years. Read also: Modi started out as a champion of free trade, but ends as a protectionist The EU and India agreed on 29 September 2008 at the EU-India summit in Marseille to extend their cooperation on nuclear energy and environmental protection and to deepen their strategic partnership. EU Turning President Nicolas Sarkozy told a joint press conference at the summit: “The EU welcomes India as a great country to participate in the development of nuclear energy and added that this clean energy will help the world cope with global climate change.” Sarkozy also said that the EU and Indian Prime Minister Manmohan had pledged to speed up negotiations on a free trade agreement and expected the agreement to be concluded by 2009. Fifth, it is essential for India to carefully select its new free trade partners. While the focus should be on countries with greater trade complementarity, making the EU, the UK and the US natural allies, it must be kept in mind that these countries are tough negotiators.

The India-EU free trade agreement has been on hold since 2007, as there is no consensus on sectors such as automotive, alcoholic beverages, dairy and fishing services, RRI and fashion 1 (ITES/BPO) and fashion 3 (specialist professionals). While Trade and Industry Minister Piyush Goyal hopes for a limited trade agreement with the United States after the U.S. presidential election, a full-fledged free trade agreement with the United States is a remote possibility if conflicts such as pharma, data security and agriculture are not sorted. However, increased cooperation in new areas such as artificial intelligence, green technology, digital and medical equipment should lead to a more balanced outcome. As you know, the United States is a difficult negotiator, as we have seen recently. With other Asian nations observing trade agreements with the West, Vietnam has already colored an India that has not signed a trade agreement since 2012, will soon restart talks on a possible free trade agreement with the European Union and the United States.