Unprecedented visit: A whole-of-govt approach needed for India-EU ties

The president of the European Commission, Ursula von der Leyen, alongside the entire European Union College of Commissioners, will visit India this week. This is a highly unusual event, and one of the first such meetings after the new Commission took office in December last year. It is being seen, both in Brussels and New Delhi, as an indication of the importance that the Commission, which will have a mandate for five years, gives to the India-European Union relationship. Much attention will naturally focus on whether this will be able to push forward negotiations on a free-trade agreement between India and the European Union. These negotiations were revived a few years ago but have not made substantial progress. This would indeed be a desirable outcome. At a time when growth in domestic demand is slowing and some large economies like the United States are threatening to erect troublesome tariff walls, the EU’s vast internal market takes on even greater importance. The EU is also vitally important as a source of capital and technology for domestic business, and dismantling barriers between the two economies will allow for increased growth in both. 

Resetting relations between two large, complex, and heavily regulated economies needs to be read from a much broader perspective. Relations between India and the EU need a whole-of-government approach rather than being subject to the bottlenecks of a few ministries and departments. After all, trade in the 21st century is much more about harmonised or interoperable regulations. On the commissioners’ agenda for this visit are ministerial-level meetings with their counterparts in India. Many of the issues that hold up economic integration between India and the EU are not related to tariffs, but are the domain of other directorates-general within the Commission or ministries in the Government of India. For example, enhancing trade in digital services would require Indian privacy law and European data-security regulations to be more closely aligned. Meetings between those responsible for such issues in both jurisdictions are thus to be welcomed. Hopefully, they will also lead to a better understanding, in both Brussels and New Delhi, about each other’s capabilities and limitations. The Commission is subject to the European Parliament and member states remain sovereign. Meanwhile, the silos within which Indian ministries operate and the power of state governments are not always fully understood in Europe. 

  Most importantly, such visits should allow bureaucrats on both sides to understand the degree of importance that the political leadership gives to deepening the relationship and increasing economic integration. With political prioritisation comes the willingness to put more on the table during negotiations. Thus, a renewed political commitment to integration will hopefully revive aspects of discussion — both on trade and in other domains — that have stalled. The geopolitical and geoeconomic impetus for such a commitment is obvious. Europe is feeling particularly vulnerable at this moment, given the unprecedented stresses that US President Donald Trump has put on the Atlantic alliance. Both in terms of security and trade, the US has signalled it will not be a reliable partner to Europe. These concerns, if to a lesser degree, will also be felt in India. It is sensible for both India and Europe to thus find ways to increase mutual support as well as their shared advocacy of a rules-based order globally.