Two EU officials on Thursday responded that during the India-EU leaders' meeting on May 8, India and the European Union are expected to announce the restart of the stalled free trade talks. One of the two officials quoted above, told reporters during a virtual briefing from Brussels that the two sides would resume talks after eight years and take up where they left off.
Although the emphasis was on bilateral relations, there was also a subliminal reference to more robust cooperation between the two sides in light of China's rise. The meeting will be between two natural partners, the world's two largest democracies with mutual values, common interests, and a commitment to multilateralism and a rules-based international order. "We need to show that a democratic and transparent model is the most capable and capable of dealing with global challenges," the second official mentioned.
Prime Minister Narendra Modi will attend a virtual summit hosted by Portugal on Saturday, where he will meet with all 27 EU leaders. The leaders of EU countries "have only met in this format once before, with the US president in March," according to a statement released by India's foreign ministry on Thursday.
Modi was supposed to travel to Portugal, but he postponed his trip after India was hit by a second wave of covid-19 infections. Among the countries and organisations that have rushed assistance to India is the European Union. In collaboration with the World Health Organization, the EU has already sent €100 million in aid and €2.2 million in grants, to help offset the effects of covid-19.
“We expect the leaders to approve the start of negotiations on three trade, investment, and geographical indications agreements," the second official said, adding, "This will be a significant move." When asked if the EU will accept a smaller early harvest agreement on a few areas that India has been pressing for, the first official responded that the talks would focus on a comprehensive agreement covering all areas of trade.
We're not talking about an early harvest, but rather a robust series of negotiations that have been aided by a renewed vigour in relations. The deal's three agreements would be part of a larger package that should be seen as a whole and in balance. Not only economically, but also strategically, both sides would benefit from the balanced, optimistic, very detailed, and mutually beneficial agreement.
The FTA talks between India and the EU, which began in June 2007, hit a snag in May 2013, when they failed to reach an agreement on major issues such as duty on wines and spirits, data protection for the IT industry, and market access. In 2018, the EU was India's largest trading partner, with bilateral trade worth $115.6 billion, with $57.17 billion in exports and $58.42 billion in imports. The leaders are expected to emphasise communication collaborations to increase collaboration in railways, maritime, and aviation, as well as the establishment of an artificial intelligence task force.