European Union- India

1. India and the European Union (EU) are expected to agree on a high-level dialogue on trade and investment to restart negotiations at a virtual EU-India Summit.

2. During this summit, India and the EU are expected to conclude several agreements including

a. a roadmap for cooperation,

b. an agreement on research sharing for civil nuclear cooperation and

c. launch a maritime security dialogue as well as negotiations between Europol and the CBI.

3. Tackling COVID-19 and its impact on the economy and the global order will be a priority on the agenda.

4. Medical developments on vaccines and treatment will be discussed along with the withdrawal of the U.S. from multilateral organisations (like the World Health Organisation), and concerns over an ‘assertive’ China.

5. The EU had welcomed India’s election to the UN Security Council next year.

BTIA

1.The trade and investment dialogue is expected to give a boost to negotiations on the Bilateral Trade and Investment Agreement (BTIA)

2. India and the EU began negotiations on a broad-based BITA in 2007.

3. Both parties expect to promote bilateral trade by removing barriers to trade in goods and services and investment across all sectors of the economy.

4. A comprehensive and ambitious agreement that is consistent with WTO rules and principles is expected to open new markets and expand opportunities for Indian and EU businesses.

Challenges ahead

1.Trade with India is only 3% of the EU’s global trade.

2. But the EU is India’s largest trading partner and investor, and accounts for 11% of India’s global trade.

3. The EU has reservations about the model “Bilateral Investment Treaty” (BIT) as proposed by India, especially on dispute mechanisms in Indian courts.