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Eu India Relations Essay Format


EU

India

Relations between the Republic of India and the European Union are currently defined by the 1994 EU-India Cooperation Agreement. The EU is a significant trade partner for India and the two sides have been attempting to negotiate a free trade deal since 2007.[1]

Trade[edit]

The EU is India's largest trading partner with 13.5% of India's overall trade between 2015 and 2016, ahead of China (10.8%) and the United States (9.3%). India is the EU's 9th largest trading partner with 2.2% of the EU's overall trade. EU Exports to India have grown from €24.2 billion in 2006 to €37.8 billion in 2016. The largest sectors being in engineering goods, gems and jewellery, other manufactured goods and chemicals. Trade in services have also tripped between 2005 and 2015, reaching €28.1 billion. Investment stocks from Europe to India reached €51.2 billion in 2015.[2]

France, Germany and UK collectively represent the major part of EU-India trade.[3] Annual trade in commercial services tripled from €5.2billion in 2002 to €17.9 billion in 2010.[4] Denmark, Sweden, Finland and the Netherlands are the other more prominent European Union countries who trade with India.[5][6]

Background[edit]

India was one of the first countries to develop relations with the European Union. The Joint Political Statement of 1993 and the 1994 Co-operation Agreement were the foundational agreements for the bilateral partnership. In 2004, India and European Union became "Strategic Partners". A Joint Action Plan was agreed upon in 2005 and updated in 2008. India-EU Joint Statements was published in 2009 and 2012 following the India-European Union Summits.[7] EU-India relationship[8] has been qualified as high on rhetoric[9] and low on substance.[10][11][12]

Free trade negotiations[edit]

This section needs to be updated. Please update this article to reflect recent events or newly available information.(January 2018)

India and the EU have been working on a Broad-based Trade and Investment Agreement (BTIA) since 2007, but India's trade regime and regulatory environment remains comparatively restrictive. Seven rounds of negotiations have been completed without reaching a Free Trade Agreement[2][13] Talks on an EU-India Bilateral Trade and Investment Agreement have stalled after failing to resolve differences related to matters such as the level of FDI & market access, manufacture of generic drugs, greenhouse gas emissions, civil nuclear energy, farming subsidies, regulation & safeguards of the financial sector, cooperation on tax evasion, overseas financing of NGOs in India, trade controls, technology transfer restrictions and cooperation on embargoes (Russia).[14]

In January 2015, India rejected[15][16] a non-binding resolution passed by the European Parliament[17] pertaining to maritime incidents which occurred within Indian Contiguous Zone.[18] European Union Ambassador to India Joao Cravinho played down the resolution saying that the case will be resolved in accordance with Indian and International Laws.[19][20][21]

Nuclear energy[edit]

The EU and India agreed on 29 September 2008 at the EU-India summit in Marseille, France's largest commercial port, to expand their co-operation in the fields of nuclear energy and environmental protection and deepen their strategic partnership. French President Nicolas Sarkozy, the EU's rotating president, said at a joint press conference at the summit that "EU welcomes India, as a large country, to engage in developing nuclear energy, adding that this clean energy will be helpful for the world to deal with the global climate change." Sarkozy also said the EU and Indian Prime Minister Manmohan pledged to accelerate talks on a free trade deal and expected to finish the deal by 2009.[22]

The Indian prime minister was also cautiously optimistic about co-operation on nuclear energy. "Tomorrow we have a bilateral summit with France. This matter will come up and I hope some good results will emerge out of that meeting," Singh said when asked about the issue. Singh said that he was "very satisfied" with the results of the summit. He added that EU and India have "common values" and the two economies are complementary to each other.

European Commission President Jose Manuel Barroso, also speaking at Monday's press conference, expounded the joint action plan on adjustments of EU's strategic partnership with India, saying the two sides will strengthen co-operation on world peace and safety, sustainable development, co-operation in science and technology and cultural exchanges.

Reviewing the two sides' efforts in developing the bilateral strategic partnership, the joint action plan reckoned that in politics, dialogue and co-operation have enhanced through regular summits and exchanges of visits and that in economy, mutual investments have increased dramatically in recent years, dialogue in macro economic policies and financial services has established and co-operation in energy, science and technology and environment has been launched. Under the joint action plan, EU and Indian would enhance consultation and dialogue on human rights within the UN framework, strengthen co-operation in world peacekeeping mission, fight against terror and non-proliferation of arms, promote co-operation and exchange in developing civil nuclear energy and strike a free trade deal as soon as possible. France, which relies heavily on nuclear power and is a major exporter of nuclear technology, is expected to sign a deal that would allow it to provide nuclear fuel to India.

12th EU-India Summit[edit]

On the eve of the Summit President Van Rompuy stated: "The 12th EU-India summit will confirm that EU and India are strengthening and rebalancing their partnership in its political dimension, thus bringing our relationship to new heights. It will demonstrate that increased co-operation between India and the EU can make a difference for the security and the prosperity of our continents."[23] Although there were some apprehensions[24] regarding the EU-enforced carbon tax on all fliers landing or passing through European skies that was opposed by many other countries, including India, China, the US and Russia, the European Union and India held their twelfth annual summit in New Delhi on 10 February 2012. Various EU representatives were present such as President Herman Van Rompuy and European Commission President José Manuel Barroso. The EU Trade commissioner, Karel De Gucht also attended the summit. The Republic of India was represented by Prime Minister Manmohan Singh, Foreign Minister S.M. Krishna, Trade Minister A. Sharma and National Security Adviser, S.S. Menon.[25]

The summit agenda covered bilateral, regional and global issues. The Leaders emphasised the importance of the EU-India Strategic Partnership. They endeavoured to reinforce co-operation in security, in particular counter-terrorism, cyber-security and counter-piracy, as well as trade, energy, research and innovation.[25]

Galileo[edit]

India has contributed towards the EU's satellite navigation system.[26]

References[edit]

External links[edit]

  1. ^EU-India relations, fact sheet, European External Action Service
  2. ^ abEU-India Trade, European Commission
  3. ^"A range of statistics to compare the EU with Brazil, Russia, India and China". EUROPA. 2010. Retrieved 25 June 2012. 
  4. ^"India-EU Bilateral Trade Relations". ficci-ineupf.com. 1 January 2013. Archived from the original on 14 October 2014. Retrieved 25 February 2015. 
  5. ^"EU: Relations with other Asian partners". European Council for Foreign Relations. 18 March 2015. 
  6. ^Bilateral trade relations with India ec.europa.eu
  7. ^History of European Union and the Republic of India partnership (EEAS)
  8. ^India, multi-aligned, and at variance with EU
  9. ^EU-India ties clouded by 'rhetoric not matching action'
  10. ^Vice-chair of parliament’s delegation for relations with India: 'Time to de-ice' EU-India relations
  11. ^India to urge airlines to boycott EU carbon scheme
  12. ^What’s Holding Back the India-EU FTA?
  13. ^India-EU Trade Economic and Technological cooperation (Website of the Indian Mission to EU
  14. ^European Union Ambassador to India Joao Cravinho: Ukraine issue: EU wants India to leverage ties with Russia
  15. ^"European Parliament adopts resolution on Italian marines, India disapproves". The Economic Times. 16 January 2015. Retrieved 19 January 2015. 
  16. ^"India disapproves European Parliament resolution on Italian marines". The Hindu. 16 January 2015. Retrieved 19 January 2015. 
  17. ^"European Parliament resolution of 15 January 2015 on the case of the two Italian 'marò'". European Parliament (Strasbourg). 15 January 2015. 
  18. ^"EU, India to expand co-operation_English_Xinhua". News.xinhuanet.com. 2008-09-30. Retrieved 2009-11-21. 
  19. ^European Union Ambassador to India Joao Cravinho: EU hopeful of speedy resolution of Italian marines issue
  20. ^European Union Ambassador to India Joao Cravinho: EU hopeful of speedy resolution of Italian marines issue
  21. ^EU hopeful of speedy resolution of Italian marines issue
  22. ^Nivedita Sen & Balu G. Nair, "Human Rights Provisions in the forthcoming India-EU Free-Trade Agreement", NUJS Law Review, 2 January 2015
  23. ^"EU-India summit – A partnership for prosperity". EUROPA. Retrieved 25 June 2012. 
  24. ^"EU's aviation carbon tax a deal-breaker". The Times of India. Retrieved 25 June 2012. 
  25. ^ ab"12th EU-India Summit, New Delhi, 10 February 2012". European Union External Action. Retrieved 25 June 2012. 
  26. ^The GALILEO family is further expanding: EU and India seal their agreement, European Commission 7 September 2005

Inhalt

1. Introduction: What is the analysis about?

2. Background: The external relations of the European Union

3. Problem: What is India’s role for the European Union and vice versa?

4. Research: Methodology & procedure pursued in the analysis

5. Findings: What is it like today and likely to be tomorrow?

6. Conclusion & Recommendations: Aspects to be derived

7. Resources

1. Introduction: What is the analysis about?

In view of globalization and economic reorganization, the EU needs to take up and intensify bilateral relations to current and future superpowers, like e.g. the United States of America and China People’s Republic.

Increasingly, India is both in terms of global politics and economically awaking and stepping into the first row of global powers. At least, this is what it is supposed to according to observer. Moreover, the role of a major regional actor makes up the significance of India as a strategic partner, esp. in the fight against terrorism, which haunts India in equal measure like Europe. Thus, the European Union naturally has to strengthen cooperation with India.

Since the EU wisely foresaw the majority of developments, they installed the so- called regular “EU / India Summit” in June 2000 and regular talks are held now.

In the following, the analysis in question will deal with the steady relationship with India and the developments within the latter. Particularly, a focus is to be laid at the trade relations between the two sides.

Firstly, I want to classify this relationship into the lane of all strategic partnerships of the European Union. By this, an evaluation of this relationship in contrast to other ones ought to be achieved. Starting from this, a description of the current situation between both parties and a prospect into the future of the latter are to be carried out.

After a short explanation of the methodology, the findings will be presented. Here, a track down of particular issues to improve and new cooperation fields take the centre stage. This part is followed by a conclusion and possible solutions discovered during research. Based on those, recommendations will be made aiming particularly at trade relations.

2. Background: The external relations of the European Union

The European Union keeps up relations with several countries outside the old continent, and especially constant contact with six nations, i.e. the United States, Canada, Japan, China PR, Russia, and, most recently, India.12

Most currently, on September 7th, 2005, the sixth “EU / India Summit” took place in New Delhi.3 The journey, led by British prime minister and current EU president, Tony Blair, originally began with an “EU / China Summit”. Hence, political observers had the opportunity to directly compare the two relationships.

The European Union keeps up talks with China PR on delicate issues, such as Human Rights, relations to China Republic (Taiwan) and domestic policy (e.g. treatment of dissidents).4 In the past years, however, the Union’s focus lay on economic relations as China PR has been, still is and even will be probably one of the greatest winners of globalization process.

While China is stated to be EU’s second biggest trading partner, India ranks only on No. 9 according to EuroStat.5 In 2004, the European Union exported goods, mainly industry products, worth $ 48 bn to China PR and imported goods worth $ 127 bn.6

Both exports and imports have been constantly growing over the last years, showing the increasing mutual importance.

Apart from the fields of politics and trade, FDI, environmental subjects, and technology play a significant role in the relations. There is only one country, which is ranked even higher than China in the trading partners’ list of the European Union: the United States of America. The world’s biggest trade relation has been established between the US and the EU. Both nations represent the most important partner for each other. 46% of the EU’s FDI went to the US and, at the same time, 69.3% of the US foreign direct investments into the various member states of the European Union. This transatlantic partnership aims at far more than merely trade issues. Political reactions to current matters often used to be brought into agreement with each other; at least before the Bush administration took over charge in the White House.

The strong connection to each other is said to base upon shared values, such as “democratic government, human rights and market economics”7 and a common history on the basis of huge streams of European immigrants into the USA.

The joint combat of terrorism and the common management of problems initiated by globalization add to the overall image of these relations.8

With the other nations, the EU has partnerships also mostly covering these themes mentioned above. Of course, in these ones as well economic and political aspects play the major role.It is unclear how the existing partnerships will develop in the coming years, whether there will be intensification or an easing of the relations. It is also not completely clear, what the future need for strategic partnerships for the European Union will be and which countries will be the ones most eligible.

3. Problem: What is India’s role for the European Union and vice versa?

“The sheer size of the European Union in economic, trade and financial terms makes it a world player.”9 Within the huge web of bilateral and multilateral relations of the EU with certain nations, it has to turn out over the coming years what India’s role within this web is. After years of being a recipient of assistance transfers of the EU, they currently are one of 6 nations which the EU conducts regular talks with.

But the question is about the future and the destination of the regular talks and about the profundity and extent of the relations. The EU maintains relations with major political and economic global players, however, mostly limited to political and economic levels. Being the largest democracies of the world and exhibiting certain parallels and similarities within their dominions, it is unclear, yet exciting to observe as well, how the relations have changed since the establishment of regular talks, what the relations actually covers and what future cooperation projects and goals will be pursued in the years to come.

Quite an amount of questions have to be addressed in the sections in the wake: Which steps have been carried out since the initial arrangement of regular talks in June 2000? What kind of gigantic leaps and small mini-steps have been taken since then? What projects are planned for the mid- to long-term future? Do the EU and India confine to concentrating on political or economic issues only? Or do they want to take extended stock in each other, maybe in the fields of culture or even military alliance? These are the subjects to be covered during the next chapters.

4. Research: Methodology & procedure pursued in the analysis

In order to address the questions appropriately, a scan of the official resources directly from the parties involved, such as the EU website and the homepage of the Ministry of External Affairs of India, will be used to complete the answers to the questions stated above.

In addition, external observers shall be consulted via their websites and publications. Not only European and Indian media, but also press coverage from overseas, i.e. the United States and China PR.

Within the following analysis, a chronological approach will be pursued. The individual summits between India and the EU will be scanned and summarized in order to pinpoint a particular development in one or the other direction. The main agreements and goals obtained in each summit will be identified and, subsequently, classified into the broader picture of the relations between the two global powers.

In the conclusion a summary of the development and possible derivations from the latter will follow. For this, certain comments from international experts and media would have been helpful as they hold much more background information about the relations than accessible via internet and published books.

5. Findings: What is it like today and likely to be tomorrow?

Unlike the majority of the partners of the EU, India is able to claim that it has a partnership which is not only based on trade and political issues, but also on cultural cooperation and other joint projects with regard to e.g. research and space technology.

Basically, this relation is a perfect role-model for a mutual win/win-situation: For India, the relation to the EU manifests an “opportunity to be recognised as a truly global player”10. This implies both economic upswing with the help of the Europeans and gain in political importance, esp. with regard to regional issues like the Kashmir dispute, the civil wars in Sri Lanka and Nepal11, the turmoil at the eastern borders, and, last but not least, the fight against terrorism initiated and supported by western neighbouring countries such as Pakistan and Afghanistan.

[...]



1 TheEuropeanCommission’sDelegationtoIndia.September2nd,2005.President Barroso to attend EU-India Summit in NewDelhi on7 September. Available at: http://www.d e lind.c e c.eu.in t /en/pr e ssandinfo/press_releases_2005/020.htm , visitedon:November 6th, 2005.

2 Ministryof External Affairsof India. January7th, 2005.India-EUrelations. Available at: http://www. m ea.g o v.in/o nm ouse/eu1.h t m , visited on: November 6th 2005

3 BBCNewsWorldEdition.September7th, 2005.Blair hails India 'turningpoint'. Available at: http://news. b bc.co.uk/2/hi/uk_news/politics/4221678.stm visited, visited on September 13th, 2005

4 TheEuropeanUnion.May2005. TheEU'srelationswithChina–Overview. Available at: http://europa . eu.int/co mm /external_relations/china/intro/ , visited on November 4th, 2005

5 EuroStat.September2nd, 2005.Chinazweitgrößter,IndienneuntgrößterHandelspartner von EU25. Available at: http://epp.eurostat.c e c.eu.int/pls/portal/docs/PAGE/PGP_PRD_CAT_PREREL/PGE_CAT_PRE REL_YEAR_2005/PGE_CAT_PREREL_YEAR_2 0 05_MONTH_09/6-02 0 92005-DE-BP.PDF, visited on: November 5th, 2005

6 Ibidem.

7 E uropean Business News Online. May 2004.EUguides- External Relations in the European Union .Available at: http://www.eubusiness.com/guides/ext-rel visitedon: October 25th,2005

8 The European Union. May 2005. TheEU'srelationswithChina–Overview. Available at: http://europa . eu.int/co mm /external_relations/us/intro/ visited on November 4th, 2005

9 European Business News Online. May 2004.EUguides- External Relations in the European Union. Available at: http://europa . eu.int/co mm /external_relations/us/intro/ visited on November 4th, 2005

10 TheEuropeanCommission’sDelegationtoIndia.2000. A Milestone in EU India Relations. Available at: http://www.delind.cec.eu.int/en/political_dialogue/summits/first/overview.htm visitedon: September 24th, 2005

11 TheEuropeanCommission’sDelegationtoIndia.2003. 4th EU-India Summit- Joint Press Statement. Available at: http://www.delind.cec.eu.int/en/political_dialogue/summits/fourth/107-joint-pr.htm visitedon: September19th, 2055

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