The European Union wants to further broaden its economic relationships in Asia. Besides the existing contacts with China, Brussels is increasingly focusing on countries such as India and Thailand. With this, the EU aims to expand its cooperation in trade, investments, technology, and industry and strengthen its economic position in the region.
India plays a central role in this. The third meeting of the EU-India Trade and Technology Council in Brussels emphasized the ambition of both parties to significantly deepen their cooperation. Trade remains important, but the agenda now also includes research, innovation, investments, economic security, and technological development.
Trade Agreement India
In anticipation of the free trade agreement, the European Union and India have formally started negotiations on India's participation in Horizon Europe, the European research program. With this, both parties want to further expand and strengthen their cooperation in research and innovation.
Promotion
The free trade agreement is seen as the basis for broader economic cooperation. Besides removing trade barriers, both parties also want to increase investments in joint production, industrial development, and new technology. Investments are regarded as an important component of the future relationship.
Additionally, the European Union and India want to jointly make international supply chains more resilient. Both parties aim for more diversification of production and supply so that dependence on one supplier or one production area is reduced. They also want to expand cooperation in various technological fields.
China
At the same time, the trade relationship between the European Union and China is under increasing pressure. Brussels continues to point to the growing imbalance in bilateral trade and maintains the possibility to implement trade-protective measures if insufficient progress is made. This means the EU is adopting a tougher stance towards Beijing.
This tougher attitude towards China goes hand in hand with intensified cooperation with other Asian partners. The European Union seeks to broaden its economic relationships in the region and build new partnerships while critically monitoring the trade relationship with China.
Thailand
Thailand also plays an increasingly important role in this strategy. Bangkok aims to conclude negotiations on a free trade agreement with the European Union this year. Although differences remain over agricultural products and raw materials, both parties see opportunities to further increase trade and investments. European companies are showing interest in expanding their investments in Thailand, while the intended agreement should contribute to closer economic cooperation that goes beyond just lowering import duties.