Trade talks to dominate India, EU summit

Negotiations on the Bilateral Trade and Investment Agreement - the FTA between the EU and India is to top the agenda of discussions

The 13th India-European Union (EU) summit is likely to resume negotiations on the Bilateral Trade and Investment Agreement (BTIA) - the official free trade pact pending since 2007 - and on a host of other trade issues when Prime Minister Narendra Modi visits Belgium on Tuesday.

The PM's visit to Brussels, as part of a three-nation tour, comes days after deadly terror attacks in the Belgian capital. After Brussels, the PM will be in Washington to attend the Nuclear Security Summit. On his return journey, he will visit Saudi Arabia.

In Brussels, Modi will attend the India-EU summit, which is being held after a gap of four years. He will also hold a bilateral meeting with his Belgian counterpart Charles Michel. The topic of terrorism would be a "very important part" of the meeting, ministry of external affairs said on Monday.
 

The India-EU summit is aimed at deepening the strategic partnership between the two sides, which are likely to deliberate on ways to finalise the free trade agreement (FTA). The last summit had taken place in 2012. In Brussels, Modi will meet top businessmen, including a delegation of diamond traders, and will also address the Indian diaspora. He will meet Parliamentarians and a delegation of Indologists, separately.

ISSUES ON THE TABLE

• Negotiations on the Bilateral Trade and Investment Agreement — the Free Trade Agreement (FTA) between the European Union (EU) and India is to top the agenda of discussions. The FTA has been pending since 2007
• Issue related to facilitation of greater movement of professionals from one country to another, arising out of the Mode 4 provisions of the 1995 General Agreement on Trade in Services will also be fought over bitterly
• The EU ban on import of 700 generic drugs by Hyderabad-based GVK Biosciences
• The EU is also seeking lower import duties on a range of commodities, including automobiles, liquor, along with greater market access to India
• Prime Minister is expected to hardsell the flagship Make in India scheme, while setting his sights on higher foreign direct investment from Europe

Other than being India's largest trading partner and biggest export destination, the 28-member bloc has also been New Delhi's "strategic partner" since 2004. Although two-way commerce was $98.5 billion in 2014-15, the EU's share in India's total trade progressively shrank in recent years. India's exports to the bloc have shrunk from 22 per cent in 2004-05 to 16 per cent in 2014-15. Imports have witnessed a similar slide, going down from 17.3 per cent to 11 per cent. The EU has also been a large source of foreign direct investment (FDI) with India receiving $25 billion in FDI equity inflows from the region between April 2012 and May 2015.