{"id":182706,"date":"2022-05-04T20:35:38","date_gmt":"2022-05-04T15:05:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=182706"},"modified":"2022-05-04T20:35:38","modified_gmt":"2022-05-04T15:05:38","slug":"how-does-a-trade-deal-with-the-eu-shape-up","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-does-a-trade-deal-with-the-eu-shape-up\/","title":{"rendered":"How does a trade deal with the EU shape up?"},"content":{"rendered":"\n
What is the News?<\/b><\/h5>\n
After signing comprehensive economic and trade agreements with the United Arab Emirates (UAE) and Australia, India has stepped up efforts to negotiate a free trade agreement (FTA) with the European Union(EU).<\/span><\/p>\n
How is the trade relationship between India and the EU currently?<\/b><\/h5>\nSource: Livemint<\/figcaption><\/figure>\n
The EU is India\u2019s third-largest trading partner accounting for 11.8% of India\u2019s total trade in 2020-21 after the US(12.61%) and China(12.59%). EU is also India\u2019s second-largest export destination after the US.<\/span><\/p>\n
India is the EU\u2019s tenth-largest trading partner accounting for 1.8% of the EU\u2019s total trade in goods in 2020.<\/span><\/p>\n
The EU is also a major source of foreign direct investment (FDI) in India. Between April 2000-March 2021, FDI flows from the EU to India totalled $88.32 billion.<\/span><\/p>\n
How will the FTA with the EU help India?<\/b><\/h5>\n
It will help Indian exporters gain a competitive advantage in the EU markets while helping domestic manufacturers get cheaper access to imports from the EU.\u00a0<\/span><\/p>\n
Why is the FTA with India important for the EU?<\/b><\/h5>\n
Firstly,<\/b> after Brexit, the EU is trying to clinch trade deals to diversify supply chains and find profitable exporting destinations for European companies.\u00a0<\/span><\/p>\n
Secondly,<\/b> the FTA with India will also help the EU reduce trade ties with Russia.<\/span><\/p>\n
What are the stumbling blocks in India-EU FTA?<\/b><\/h5>\n
A major point of contention has been\u200athe EU\u2019s <\/span>demand for\u200a a reduction in India\u2019s tariff rate<\/b>.<\/span><\/p>\n
The earlier talks also did not resolve issues\u00a0involving<\/strong> trade in agriculture and services, digital trade, intellectual property rights, and commitments on sustainable development issues such as environmental, social, and labour rights.<\/p>\n
Visa requirements and work permits for Indian workers<\/b> to the EU have also been a major bone of contention.<\/span><\/p>\n
Further, restrictions on the transfer of personal data<\/b> from the EU to other countries is also a major barrier to trade in digital services.<\/span><\/p>\n
Source: <\/b>The post is based on the article <\/span>\u201cHow does a trade deal with the EU shape up?<\/b>\u201d<\/b> published in<\/span> Livemint <\/b>on 4th May 2022.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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