Navigating a changing world: 

Navigating a changing world: 

Context:

The 14th edition of India-EU Summit held recently in New Delhi on October 6.

Introduction:

• The EU was represented by President of the European Council, and President of the European Commission. While the India was represented by Prime Minister Narendra Modi.
• The summit marked the 55th anniversary since the establishment of EU-India diplomatic relations.
• The leaders reviewed the wide-ranging cooperation under the India-EU Strategic Partnership. Recognising that India and the EU are natural partners, the leaders reaffirmed their commitment to further deepen and strengthen the India-EU Strategic Partnership based on shared principles and values of democracy, freedom, rule of law and respect for human rights and territorial integrity of States.

Positive outcomes of summit:

• India and EU reaffirmed their commitment to a “rules-based” international order and a “multipolar” world.
• This is significant because U.S. moving towards reneging on several international deals.
• Two sides have agreed to enhance cooperation at multilateral and bilateral interactions.
• Under the FTA, the issue of data adequacy and greater market access was discussed at length.
• The leaders committed to work in a result-oriented and mutually beneficial manner to further strengthen the India-EU Strategic Partnership by deepening their trade cooperation, enhancing investment flows in both directions and broadening dialogue and engagement on global and regional issues, including climate change, as well as migration and the refugee crisis, and resolved to further strengthen their bilateral and multilateral cooperation in these areas.
• The leaders commended the strong engagement of the European Investment Bank in India in a wide range of key sectors, in particular in the field of climate action and renewable energy.

Foreign Policy and Security Cooperation:

• The leaders reaffirmed their commitment to an open, free, secure, stable, peaceful and accessible cyberspace, enabling economic growth and innovation.
• They agreed that India and the EU, as the world’s largest democracies, need to support a rules-based international order that upholds agreed international norms, global peace and stability, and encourages inclusive growth and sustainable development in all parts of the inter-connected and multipolar world.
• The leaders strongly condemned the recent terrorist attacks in many parts of the world, underlining their common concern about the global threat posed by terrorism and extremism.
• The two sides reaffirmed their commitment to strengthening global non-proliferation efforts as highlighted at the India-EU Non-proliferation and Disarmament Dialogue in New Delhi on 18 July 2017.
• India and the EU reaffirmed their commitment to enhance maritime security cooperation in the Indian Ocean and beyond. Both sides noted the recent joint manoeuvres (PASSEX) between the EU Naval Force and the Indian Navy off the coast of Somalia, as a successful example of naval cooperation
• Both sides agreed to enhance the India-EU space cooperation, including Earth observation.
• India and the EU reiterated the importance they attach to human rights cooperation, including on gender equality and women empowerment in all spheres of life
• India and the EU reaffirmed their support for the continued full implementation of the Joint Comprehensive Plan of Action (JCPOA) regarding the Iranian nuclear issue
• Regarding the situation in Syria, India and the EU reaffirmed the primacy of the UN-led Geneva process and called for full support for the intra-Syrian talks with a view to promoting a political solution in Syria
• Both sides underlined the importance of ASEM as an informal platform for connecting Asia and Europe. Both sides also agreed to give new impetus to ASEM in the run up to the next ASEM Summit to be hosted in Brussels, where the focus would be on tackling global challenges together.

Terrorism, Rohingya discussed:

• Adopting a Joint Statement on Cooperation in Combating Terrorism, both sides agreed to take decisive and concerted actions against globally proscribed terrorists and terror entities, including Hafeez Saeed, Zaki-ur-Rehman Lakhvi, Dawood Ibrahim, Lashkar-e-Tayibba, Jaish-eMohammad, Hizb-ul-Mujahideen, Haqqani Network, Al Qaeda, ISIS (Da’esh) and their affiliates.
• India and EU also discussed the Rohingya crisis and urged Myanmar to implement the Kofi Annan-led Rakhine Advisory Commission’s recommendations and work with Bangladesh to enable the return of the displaced persons from all communities to Northern Rakhine State.

Deadlock areas:

• The India-European Union Trade pact, the Broad-based Trade and Investment Agreement (BTIA), have not progressed during the 14th India-EU Summit held in New Delhi on October 6.
• Summit was unable to set in motion the stalled negotiations for concluding the proposed Free Trade Agreement (FTA), or Broad Based Trade and Investment Agreement (BTIA).
• Conclusion of the FTA was the top most agenda of the European leaders, but India was more eager to discuss issues related to counter-terrorism and security.

Trade discussion:

• Among the reported causes for the failed talks is a disagreement on whether the protection of foreign investments will be part of the BTIA or dealt with in a stand-alone treaty.
• Another issue holding up the trade talks has been the EU not granting “data secure” certification to India — a condition that facilitates the cross-border transfer of personal data, key to a number of companies’ services, especially in the IT industry.
•  India does not have a stand-alone data privacy law yet and the state recently went to great lengths to create a false dichotomy between development and privacy during the right to privacy hearings in the Supreme Court, including, by (unsuccessfully) arguing that privacy was an elitist concern.
• Other sticky points in the negotiations have been India wanting a greater ease of movement of temporary skilled workers to provide services in the EU.
• This EU and other developed nations have been historically reluctant about moving forward on this issue and this has become more challenging with the rise of populism and protectionism in Europe.
• The EU wanting greater market access for its automobiles and its wines and spirits.
• The EU is, commendably, at the forefront of protecting citizens’ rights as regards what happens to their data online.
• It would certainly be a shot in the arm for consumer rights and privacy standards in the digital age if India were to adopt and implement strict standards for handling data, an outcome desirable in itself.

U.S’s shifting position:

• The inauguration of Donald Trump as U.S. President and consequent retreat of America from its leadership role in the West has provided a significant external stimulus to the EU’s identity shift.
• Mr. Trump has said he is going to “decertify” the nuclear deal with Iran — a deal that the EU is keen to uphold — and his administration has given notice of intent to withdraw from the Paris Accord.

Why India needs to cement its bond with the EU?

• India and the EU should continue to welcome each other’s leadership roles in the world, because of commonly shared values.
• The EU is India’s largest trade partner and it is also, like India, wary of China’s political (the summit declaration makes a reference to freedom of navigation principles) and economic dominance.
• The EU is concerned about China flooding global markets with inexpensive steel and its response to China’s Belt and Road Initiative has been lukewarm, but the strength of China’s relationship with EU member states themselves is heterogeneous, with China trying to make inroads into Eastern and Central Europe through infrastructure investments.
• With around €100 billion in bilateral goods and services trade last year, India and the EU have a lot to gain from a trade deal.
• It will certainly pay for both India and the EU to keep each other close as they feel their way around the emerging international order.

Conclusion:

• The European Union and India are natural partners. Every year, millions of Europeans come to India to discover this great country’s many marvels. There is even a local cricket team in my native Luxembourg, made up largely of Indian players.
• India is one of the world’s fastest growing economies; the EU is the world’s biggest open market and the world’s second largest economy.
• As the world’s two largest democracies, it is now time for Europe and India to infuse their relationship with a liberal vision for a transformed global order