India and the European Union (EU) have been negotiating a free trade agreement for almost a decade now. The India EU trade agreement would be one of the largest trade agreements in the world and would have far-reaching implications on both sides. Here is a closer look at the status of the negotiations and what they mean for the two sides:
Negotiations so far:
The negotiations between India and the EU for a free trade agreement began in 2007. Since then, there have been a total of 16 rounds of talks, with the latest round taking place in 2013. The talks have been put on hold since then due to various reasons, including differences over market access and intellectual property rights.
The EU is India`s largest trading partner, with bilateral trade between the two sides exceeding $100 billion in 2018. However, the trade relationship has been marred by a number of issues, including India`s high tariffs on EU goods and restrictions on foreign investments.
What the agreement aims to achieve:
The India EU trade agreement aims to create a free trade zone between the two sides, which would lead to significant reductions in tariffs and other trade barriers. The agreement would also create a level playing field for businesses on both sides and provide a boost to investment.
If implemented, the agreement is expected to increase India`s exports to the EU by up to 40 percent, while the EU`s exports to India are expected to increase by around 30 percent. The agreement would also lead to the creation of thousands of new jobs in both India and the EU.
Challenges facing the negotiations:
One of the biggest challenges facing the negotiations is the issue of market access. India has been seeking greater access to the EU`s services market, particularly in sectors such as IT and finance. On the other hand, the EU has been seeking greater market access for its agricultural products, which have faced significant barriers in the Indian market.
Another major challenge is the issue of intellectual property rights. The EU has been pushing for greater protections for its pharmaceutical and biotech industries, while India has been resisting these attempts, arguing that they would lead to higher drug prices.
Conclusion:
Despite the challenges facing the negotiations, there is hope that a comprehensive India EU trade agreement can be reached in the near future. The agreement has the potential to create significant economic benefits for both India and the EU, and would serve as a model for future trade agreements between other countries.
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