EU-India Free Trade Agreement

Abstract

The European Union (EU) and India are currently negotiating a bilateral free trade agreement (FTA) and investment framework. There is an ongoing debate as to whether the EU-India FTA will act as a building block for the trading partners. This article addresses the broader concerns about compatibility; prospects of and the challenges to the proposed EU-India FTA; identifies the building and stumbling blocks in the ongoing negotiations; and suggests a way forward from a policy perspective. The findings suggest that to maximize the potential benefits of this FTA, trade barriers (tariff and non-tariff) in goods and services sectors should be addressed. This must be complemented by a mutually agreeable time frame to conclude negotiations in areas where interests of the partners vary.

The Value of Gender Equality in EU-Asian Trade Policy: An Assessment of the EU’s Ability to Implement Its Own Legal Obligations

“…This is clearly visible in both the EU's legal obligations and the rhetoric displayed in co-operation and development policy documents. However, when considering the EU's trade policy, explicit references to equality 14 EU-India negotiations have been mired by different economic interests of the parties (see Khorana and Perdikis 2010, Khandekar 2012, Modwel and Singh 2012, Khorana and Garcia 2013. 15 From authors' discussions with trade officials.…”

Some Critical Issues in the EU–India Free Trade Agreement Negotiations

“…Examples of such non-tariff barriers include: quantitative restrictions; import licensing; mandatory testing and certification for a large number of products; complicated and lengthy customs procedures; 38 sanitary and phytosanitary measures on mineral water and live cattle and poultry; reciprocity concerning temporary admission of products in transit; 39 and market access restrictions to the Indian banking, retail and government procurement sectors. 40 In short, the EU's interests in an FTA with India underline the core arguments of the external policy of the Global Europe Strategy: creating market access through the lowering of non-tariff barriers, allowing access to resources and tapping into new areas of growth such as intellectual property, services, investment, public procurement and competition. 41 On the other side of the table, Indian goals and objectives in the FTA negotiations are to be seen in the light of the economic developments in the region.…”

“…105 Indian politicians seem to have been reminded of the EU's agricultural sensitivities when considering drastically lowering tariffs for subsidised European agricultural products, and as a result, some dairy products have been added to the list of 'sensitive products'. 106 Additionally, India's other FTAs only marginally address agriculture in practice, if at all. India thus has strong defensive agricultural interests to protect the means of support of weaker parts of its population.…”

European Union–India Trade Negotiations: One Step Forward, One Back?

“…Services are a component where partners' interests diverge widely (Khorana and Perdikis, , pp. 193–4).…”