The European Union has relaunched trade talks with India to counter China’s might

The European Union (EU) and India relaunched stalled negotiations on Saturday for a “balanced, ambitious, comprehensive and mutually beneficial” trade deal, as the Asian giant grapples with the devastating impact of the coronavirus pandemic. The heads of the European institutions and Indian Prime Minister Narendra Modi held a meeting by videoconference. Modi canceled his trip to the Portuguese city of Porto due to the gravity of the situation in his country, and connected by videoconference.

The relaunch of trade negotiations with India coincides with the stagnation of an investment protection agreement that the EU has negotiated for several years with China. The freezing of this agreement is the result of the worsening of political tensions between Brussels and Beijing, due to the situation in Hong Kong and the treatment reserved for the Uyghurs.

The European Union has for years sought to gain better access to China’s huge domestic market, although China’s human rights and labor standards violations are permanent obstacle.

In this scenario, a possible deal with India would work as a counterweight to the power of the Chinese regime. a joint statement, all leaders announced the decision to “Resume negotiations for a balanced, ambitious, comprehensive and mutually beneficial trade agreement capable of responding to current challenges.”

However, the Declaration notes that in order to “create the positive momentum necessary for these negotiations”, the parties considered “imperative to find solutions to the persistent problems of access to the markets”. The parties also agreed to start negotiations for a separate investment protection agreement.

“We also agreed to resume the human rights dialogue after eight years … This issue is at the heart of the EU’s engagement with India,” said European Council chief Charles Michel .

The summit also discussed the coronavirus pandemic and the situation in India. “We strongly support India at the moment. We have assured the Prime Minister of our solidarity and support for whatever he needs, ”said European Commission President Ursula von der Leyen.

This meeting came at a time when a significant part of the international community is considering a proposal supported by the government of the United States on the temporary lifting of patents for the anticovidial vaccines. European leaders for now maintain a unified position calling on the United States to end the blockade on the export of vaccines and supplies.

Von der Leyen told Porto that the lifting of patents “does not solve the problems and will not produce a single dose of vaccine in the short to medium term”.

New chapter

The Europeans and Indians had started a delicate negotiation for a possible trade agreement in 2007, but the talks were abandoned in 2013 due to insurmountable differences. Therefore, by announcing this Saturday the resumption of these negotiations, Michel underlined that it was about a “new chapter” in the relations between Brussels and New Delhi.

For host Antonio Costa, Prime Minister of Portugal, the Porto summit “was a success”. “We are organizing a summit between the leaders of the 27 EU countries and the Indian Prime Minister, and this is very important at a time when India is going through a dramatic situation,” he said, referring to the health crisis.

After the suspension of negotiations in 2013, reaching an agreement with India “will not be easy or quick,” an EU official said on Friday. “India is a very protectionist country and although it is a great democracy, human rights issues are very sensitive and Indians easily withdraw,” he explained.

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