The European Union (EU) and India expressed their readiness on Friday to renew negotiations on a free trade agreement, while also deciding to strengthen cooperation in the fight against terrorism.
“We agreed that we should elevate trade relations to a new level. It is high time to reach a free trade agreement between India and the EU,” said European Commission President Jean-Claude Juncker.
Juncker and European Council President Donald Tusk led the EU delegation, while Prime Minister Narendra Modi headed the Indian group at the 14th India-EU summit in New Delhi.
“When the circumstances are right, and only when they are right, we will restart negotiations on this agreement,” added Juncker.
Negotiations on a comprehensive Trade and Investment Agreement, which is supposed to enable better access to markets by eliminating tariffs and duties, were initiated in 2007 and have been stalled since 2013.
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The main sticking point for the EU is that India does not agree to meet demands for the elimination of tariffs on cars and automotive parts, as well as wine and spirits. The two sides also diverge on intellectual property rights, and Europe is also concerned about whether India has adequate security infrastructure to protect personal data.
The EU is India’s largest regional trading partner, with a trade exchange worth 100 billion euros. The European Investment Bank has confirmed the largest investment loan to date in India – a $584 million project for the construction of a new railway line with 96 new trains for the subway in Bangalore.
The two sides also confirmed enhanced cooperation in the fight against terrorism and radicalization in a joint statement, and touched upon the humanitarian crisis with the Rohingya. About 500,000 of them have fled from Myanmar to Bangladesh, and the EU is seeking to stabilize the situation and the possibility of returning to their homes. However, the Indian government intends to deport about 40,000 Rohingya and claims that they are not refugees but “illegal immigrants.”
