The European Union and India will resume negotiations on a comprehensive trade agreement. This was agreed upon by Indian President Narendra Modi and the EU leaders during a video summit.
Modi and the EU leaders were originally supposed to finalize this on Saturday at a summit in Porto, Portugal, but the Indian president decided to stay home as his country is overwhelmed by a new wave of COVID-19 infections.
Eight years ago, negotiations between India and the EU stalled, partly due to India's conditions aimed at protecting its own industry and agriculture against the rapidly growing European economy.
Traditionally, India has been heavily oriented towards trade with Great Britain, but since Brexit, it must now establish new agreements with both London and Brussels. Moreover, the EU and India have moved closer in recent years as they both face the rise of China.
In the 2013 negotiations, India, in the EU’s view, remained too attached to its protectionist policies. For example, India imposes significant import tariffs on European food products. There were also disagreements over patent law and the rights of Indians to work in Europe. Meanwhile, some EU countries are now clamoring for highly educated Indian engineers and nurses.
Additionally, partly due to the COVID-19 pandemic and the emergence of new economic powers such as China and Brazil, EU countries now view unrestricted global free trade differently.
First, the EU and India will now negotiate on unpredictable government actions and protection of geographically specific product names. They also aim to facilitate internet traffic and connect energy networks.
They will also resume discussions on human rights and the security of countries around the Indian and Pacific Oceans, a region where China is trying to expand its influence.