send mail to support@abhimanu.com mentioning your email id and mobileno registered with us! if details not recieved
Resend Opt after 60 Sec.
By Loging in you agree to Terms of Services and Privacy Policy
Claim your free MCQ
Please specify
Sorry for the inconvenience but we’re performing some maintenance at the moment. Website can be slow during this phase..
Please verify your mobile number
Login not allowed, Please logout from existing browser
Please update your name
Subscribe to Notifications
Stay updated with the latest Current affairs and other important updates regarding video Lectures, Test Schedules, live sessions etc..
Your Free user account at abhipedia has been created.
Remember, success is a journey, not a destination. Stay motivated and keep moving forward!
Refer & Earn
Enquire Now
My Abhipedia Earning
Kindly Login to view your earning
Support
Context
As the economy begins to suffer from the U.S.-China trade war, it is imperative for India to pursue a free trade agreement with the European Union (EU).
Why EU
Moving beyond the U.S. and China, this is the right time for India to engage the EU.
It as an indispensable democratic partner to craft a favourable geo-economic order.
India risks being left behind amidst a collapsing global trade architecture, rising protectionism and a new emphasis on bilateral FTAs.
India is the only major power lacking an FTA with any of its top trade partners, including the EU, the U.S., China, and Gulf economies. This is a problem as most trade is now driven either by FTAs or global value chains.
EU’s revived focus on FTAs could exacerbate this risk for India. EU concluded a trade deal with Vietnam and an FTA with the Mercorsur countries in South America. India is hanging on to its Most Favoured Nation (MFN) status.
India’s status under the EU’s Generalised Scheme of Preferences (GSP) will face rising competition from Pakistan or Sri Lanka, who enjoy GSP+ benefits.
India will struggle to keep exports competitive for Europe, which is its largest trade partner and where 20% of its exports land up.
Concerns about the Regional Comprehensive Economic Partnership are not resolved yet.
The collapse of the Transatlantic Trade and Investment Partnership and concerns about excessive economic reliance on China have propelled the EU to become a little more pragmatic.
EU India a unique regulatory model that balances growth, privacy, and standards.
Progress in talks
From agriculture to intellectual property, the EU and India have been exchanging and aligning views on many issues.
New areas like e-commerce have seen convergence because India’s position on data privacy is not that different from the EU’s.
India can delay discussions about the free flow of data and freeze differences on the tax moratorium issue or data localisation while committing to liberalise in other areas.
Way ahead
Beyond mere economic cost-benefit analysis, India must approach EU FTA from a geostrategic perspective.
EU negotiators are now more willing to make concessions on labour or environmental regulations.
India’s governance framework shares the European norms of democratic transparency and multi-stakeholder participation in a variety of new technological domains.
CONCLUSION
When New Delhi speaks of Europe as a strategic partner to uphold a multipolar order, it must go beyond security and begin with the business of trade and technology.
By: VISHAL GOYAL ProfileResourcesReport error
Access to prime resources
New Courses