Why India-EU Free trade Agreement failed to gain traction, even though it is been in talks long ago. Discuss the mutual concerns and its way forward.
Refer - The Hindu
IAS Parliament 8 years
KEY POINTS
· EU is India’s largest trade partner.
· India – EU (European Union) Broad-based Bilateral Trade and Investment Agreement (BTIA) negotiation started in 2007.
· Even after sixteen rounds of negotiations, BTIA is still a mirage.
Concerns
For India
· Expects a greater ease of movement of temporary skilled workers to provide services in the EU.
· Expects relaxing pharmaceutical sector.
· EU not granting the Data Secure certification status to India.
· This data secure status facilitates the cross-border transfer of personal data, key to services industry in India.
· Rising populism and protectionism in Europe.
For Europe
· A disagreement on whether the protection of foreign investments will be part of the BTIA or dealt with in a stand-alone treaty.
· India has allowed lot of bilateral investment treaties to lapse, including those with EU states.
· Expect greater market access for its automobiles, wines, spirits and dairy products.
· India does not have a data privacy law.
· Concerns about the protection of personal data of EU citizens, in case of services industry are open to India.
· Expects strong intellectual property regime.
Way forward
· India – EU both shared a common concern of rising China’s political and economic dominance.
· EU is concerned about the China’s goods flooding global markets.
· China’s factor obligates India – EU to cement its bond further to challenge the rise of China globally.
· A strong political commitment to resolve the mutual concerns by following a mid-way, thus ensuring win-win situation is necessary.
