India-EU Decide To Strengthen Bilateral Trade in 2020
As the European Union (EU) explores new avenues to strengthen its international trade possibilities, it has chosen to move closer to India.
Both the countries held their first high-level dialogue to discuss ways, to promote bilateral trade and investments. This was confirmed in a formal statement made by the Commerce Ministry. The discussions between both brasses saw them agreeing on “further deepening of bilateral trade and investment relationship through a series of regular engagements, aiming at quick deliverable for the businesses in these tough times.” The Covid-19 situation has seen India’s business roadmap evolve. It has moved from dependency to self-sufficiency in the most organic way.
European Union has had to reinvent itself with its closest trade partner moving away from it. The prime point for the India-EU rekindled business relationship is going to be the bilateral regulatory dialogue, to be initiated in the next three months.
The high-level talks are a result of the mind to restart and initiate the Bilateral Trade and Investment Agreement that went kaput in 2014 after being launched in 2007. This was because there was a difference of opinion over market access for key items such as automobiles, wines & spirits, dairy as well as the movement of professionals.
Later, the EU wanted to make additions to the agreement that India at that time was not comfortable with. At this time, Britain was also a part of the EU and therefore the trade dynamics could have been skewed towards 10 Downing Street. The suggested additions included labor, environmental, and government procurement issues. However, both sides finally agreed to come to a common understanding only in July 2020.
The reason for India to initiate a level playing ground to EU comes in its desire to develop alternate bilateral trade relationships away from China, on which it has been heavily dependent.