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

Abstract

This article contributes to debates on the proliferation of bilateral free trade agreements (FTAs), by analysing novel empirical material: the EU-India FTA negotiations, which have attracted little academic scrutiny. By elaborating on the underlying negotiating interests and strategies of the EU and India, the article examines the significance of overarching interests in ongoing negotiations and articulates the defensive and offensive interests of both parties. It presents a vision of the controversial and milieu-shaping interests at stake, which offer an alternative theoretical explanation for the pursuit of FTAs, and highlights possible outcome scenarios.

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.…”

Power in Global Trade Governance: Is the EU a Unitary Actor, a Tool for Dominance, or a Site of Contestation? GATS and the TTIP Negotiations

“…The EU has then followed this approach but with mixed success. For example, Khorana and Garcia's (2013) analysis of negotations towards an EU--India free trade agreement shows that it is becoming harder for the EU to promote its regulatory preferences. The financial crisis -which hit Western states the hardest -markedly reduced the EU's market power whilst at the same time India and other states formerly dependent on EU markets have managed to diversify such that the EU lacks the clout it once did (Khorana and Garcia, 2013:695--696).…”

“…There is debate over how the EU behaves as an actor in global trade governance, particularly given the strong emphasis on progressive norms within much of EU policy including labour rights, and sustainable development. Recent scholarship has tended to emphasise the realist leanings of EU trade policy, shifting away from a more normative approach (Adriaensen and Gonsalez--Garibay, 2013;Zimmerman, 2007;Garcia, 2013). This has been present in both how the EU behaves at the WTO as well as other aspects of its foreign trade policy, including economic partnerships.…”

Modelling Effects of Tariff Liberalisation on India’s Key Export Sectors: Analysis of the EU–India Free Trade Agreement

“…In a similar vein, Bhagwati and Panagariya (1996) propose the 'spaghettibowl' approach and suggest that such arrangements generate complexity and contribute to lack of transparency in the global trading system. Despite unanimity on the effects of trading agreements, there is growing support for FTAs in that these agreements improve access to markets and level playing field, and build alliances for World Trade Organization (WTO) negotiations, though some cast doubts on the benefits of individual FTAs between large economies and smaller ones, and the wisdom of limited agreements (Baldwin, 2002(Baldwin, , 2006(Baldwin, , 2008(Baldwin, , 2011(Baldwin, , 2013Bhagwati & Panagariya, 1996;Bhagwati, 1998;Khorana & Garcia, 2013;Khorana et al, 2010;Krugman, 1993;Viner, 1950). However, given that trade agreements have been accepted as a way forward to regional integration, the negotiating countries are facing the challenge of how to maximise their benefits while minimising their costs (Ng & Yarcia, 2014).…”

“…Thus, within extant literature, there is ample evidence on 'building blocks' proposition of trading agreements and how these are stepping stones for future multilateral trade liberalisation (Dent, 2003;Ethier, 1998;Khorana & Garcia, 2014;Summers, 1991;Wei & Frankel, 2005). But some researchers, however, put forth the 'stumbling blocks' approach and and Perdikis (2010), Khorana and Garcia (2013), Asthana (2014) andEuropean Commission (2015). 2 See Meade (1995), Lipsey (1970), Pomfret (1988) and Magee (2016) for an exhaustive economic overview on rationale and determinants of FTAs.…”