The&nbsp;European&nbsp;Commission said&nbsp;that efforts to win approval for the EU's massive investment deal with China were effectively "suspended" given the soured diplomatic relations between both sides after tit-for-tat sanctions.

"We now in a sense have&nbsp;suspended... political outreach activities from the&nbsp;European&nbsp;Commission side," EU Executive Vice President Valdis Dombrovskis said&nbsp;in an interview.

"It's clear in the current situation with the EU sanctions in place against China and Chinese counter-sanctions in place, including against members of&nbsp;European&nbsp;Parliament (that) the environment is not conducive for ratification of the agreement," Dombrovskis said.

<a href="https://www.wionews.com/videos/gravitas-eu-choses-india-over-china-for-free-trade-383089">Watch |</a>

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To the surprise of many, the&nbsp;European&nbsp;Union&nbsp;and China in late December approved a major investment pact, wrapping up seven years of painstaking negotiations thanks to a final push by Germany.

The pact has been defended as a much-needed opening to China's long-closed economy for&nbsp;European&nbsp;companies, but was sure to face a difficult ratification amongst the 27 member states as well as the&nbsp;European&nbsp;Parliament.

Dombrovskis, a former Latvian prime minister, is in charge of spearheading that approval process in the EU, which has already met with pushback from key MEPs.

The&nbsp;European&nbsp;Union&nbsp;sanctioned four Chinese officials&nbsp;in March over suspected human rights violations in China's Xinjiang.

China responded by imposing its own sanctions against&nbsp;European&nbsp;politicians, scholars and research groups.

India and&nbsp;the European Union have long held conversations on ways to enhance trade.

A free-trade pact was discussed in 2013&nbsp;but the talks were put on hold due to&nbsp;disagreements on technical issues like tariffs, patents and data security.

Now the two sides are looking to settle these differences. This Saturday, a&nbsp;summit will be held between EU leaders and Indian Prime Minister Narendra Modi. The aim will be to revive the stalled discussions.

According to a draft summit statement, The two sides plan to resume&nbsp;negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement.

''We emphasise our commitment to free, open, and inclusive Indo-Pacific region space, underpinned by respect for territorial integrity, sovereignty, democracy and rule of law,'' it added.

The European Commission said that efforts to win approval for the EU's massive investment deal with China were effectively "suspended" given the soured diplomatic relations between both sides after tit-for-tat sanctions.

The European Commission said that efforts to win approval for the EU's massive investment deal with China were effectively "suspended" given the soured diplomatic relations between both sides after tit-for-tat sanctions. "We now in a sense have suspended... political outreach activities from the European Commission side," EU Executive Vice President Valdis Dombrovskis said in an interview. "It's clear in the current situation with the EU sanctions in place against China and Chinese counter-sanctions in place, including against members of European Parliament (that) the environment is not conducive for ratification of the agreement," Dombrovskis said. Watch | To the surprise of many, the European Union and China in late December approved a major investment pact, wrapping up seven years of painstaking negotiations thanks to a final push by Germany. The pact has been defended as a much-needed opening to China's long-closed economy for European companies, but was sure to face a difficult ratification amongst the 27 member states as well as the European Parliament. Dombrovskis, a former Latvian prime minister, is in charge of spearheading that approval process in the EU, which has already met with pushback from key MEPs. The European Union sanctioned four Chinese officials in March over suspected human rights violations in China's Xinjiang. China responded by imposing its own sanctions against European politicians, scholars and research groups. India and the European Union have long held conversations on ways to enhance trade. A free-trade pact was discussed in 2013 but the talks were put on hold due to disagreements on technical issues like tariffs, patents and data security. Now the two sides are looking to settle these differences. This Saturday, a summit will be held between EU leaders and Indian Prime Minister Narendra Modi. The aim will be to revive the stalled discussions. According to a draft summit statement, The two sides plan to resume negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement. ''We emphasise our commitment to free, open, and inclusive Indo-Pacific region space, underpinned by respect for territorial integrity, sovereignty, democracy and rule of law,'' it added.

How will India benefit from EU's ratification of China investment deal?

By Sangeeta Khorana

The European Union and India have been negotiating a free trade agreement (FTA) since 2007. Despite growing trade between the EU and India, talks stalled in 2013 after 16 rounds, only resuming in 2018. There has been talk in Brussels that Brexit might help remove some of the hurdles to an agreement. But this is unlikely to be the case.

If anything, the UK is better positioned to secure a trade deal with India than the EU, although this will not be straightforward. The UK’s desire to curb immigration is likely to lead to tough negotiations. But future UK-India-FTA talks may well be an opportunity to negotiate a manageable set of strategic priorities.

The EU is India’s largest trading partner, accounting for around 13 per cent of India’s total trade in goods in 2017. India contributes around 2.3 per cent of total EU trade and is the EU’s ninth biggest trade partner. Trade in goods between the EU and India grew by three times over 2002-18, from €28 billion to €91 billion.

Services are also an important component of EU-India trade. Eurostat data shows that Indian services exports to the EU were €16.6 billion in 2018, while imports were €17.1 billion. The sector has also attracted foreign direct investment from the EU, including Germany, the Netherlands, France, Italy and Belgium, as well as the UK.

Sticking points

Talks between the EU and India broke down in 2013 after it became clear that reaching an agreement on the demands for tariff reductions and market access, as well as the inclusion of social, environmental and human rights clauses would be impossible. Discussions resumed in 2018, which led to the declaration of an EU-India strategic partnership. While this agreement helped to resume the talks, it mainly reaffirmed current ties rather than tackling any of the issues that caused the trade agreement discussions to stall initially.

From the EU’s perspective, the main sticking points were drug patents, tariffs for second-hand cars, agriculture, services, rules of origin and an unacceptable list of sensitive items. The EU is adamant about negotiating a stronger intellectual property regime and a sustainable development chapter with social and environmental clauses, which India is unwilling to include in the trade agreement.

Plus, the EU wants detailed provisions for investor-state dispute settlement (ISDS) after India cancelled 20 bilateral investment protection treaties with individual EU countries in 2016. The ISDS demand is not acceptable to India and current regulations require foreign investors to resolve their problems in Indian courts for a period of five years before pursuing a claim under international law.

India views the proposed trade deal as an opportunity to address issues it has with the way the two sides trade in services. In particular, India wants more visas to be granted to its skilled workers in the services industry. This has been a longstanding demand.

After Brexit, this demand is unlikely to fade. But, at a time when all EU member states are grappling with a “migration crisis” any loosening of visa rules is highly unlikely. India has also been demanding status as a “data-secure nation”, which will reduce compliance costs for Indian software providers. But, given EU concerns over regulatory norms and data-privacy standards it is unlikely that the EU will agree to this demand.

Opportunity for a UK trade deal?

The UK is among India’s main trading partners from the EU bloc. Trade totalled €13.6 billion in 2018, accounting for 17 per cent of India’s overall trade with the EU. Moreover, trade between India and the UK increased at an average rate of 8.8 per cent a year between 2002 and 2018.

Machinery and transport equipment constitute 40 per cent of India’s exports, and accounts for nearly 20 per cent of total UK’s trade with India. The UK’s exports of alcoholic beverages also registered a significant increase, from €14m to €162m from 2002-18.

The lack of progress in EU-India trade talks might just be an opportunity for the UK to launch its own negotiations for a trade deal with India. From an economic perspective, India is an attractive trade partner. It is projected to be the world’s fastest growing economy, with an annual GDP growth rate of around 6.5 per cent. In the UK, GDP is predicted to grow by a mere 1.5 per cent in 2019. India is also home to almost one-fifth of the world’s population. It could be a strategic partner for the UK in Asia, presenting an opportunity to increase Britain’s soft power in the region.

From India’s perspective, a trade deal with the UK could be an opportunity to increase pressure on other Asian countries, especially China, to liberalise their trade. This will also help India’s geopolitical considerations in the region given the history of tense diplomatic relations with Pakistan. And it could help strengthen India’s Commonwealth ties.

But other issues remain. The UK and India would still have to agree on reducing tariffs on their respective imports. Visa numbers and intellectual property would also be issues for the UK, as they were with the EU, and could yet prove contentious. So free trade talks between the UK and India could still be long and drawn out.

Recent political developments, however – including Brexit, eurozone uncertainty, sluggish global growth rates and trade tensions from the Trump administration’s pursuit of a protectionist agenda – all have serious implications for future trade talks. These could well nudge the partners to review their red lines and return to the negotiating table.

 
(Sangeeta Khorana is Professor of Economics, Bournemouth University)

(This article was originally published on The Conversation. Read the<a href="https://theconversation.com/is-brexit-an-opportunity-to-revive-the-eu-india-trade-deal-113780"> original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

By Sangeeta Khorana The European Union and India have been negotiating a free trade agreement (FTA) since 2007. Despite growing trade between the EU and India, talks stalled in 2013 after 16 rounds, only resuming in 2018.

By Sangeeta Khorana The European Union and India have been negotiating a free trade agreement (FTA) since 2007. Despite growing trade between the EU and India, talks stalled in 2013 after 16 rounds, only resuming in 2018. There has been talk in Brussels that Brexit might help remove some of the hurdles to an agreement. But this is unlikely to be the case. If anything, the UK is better positioned to secure a trade deal with India than the EU, although this will not be straightforward. The UK’s desire to curb immigration is likely to lead to tough negotiations. But future UK-India-FTA talks may well be an opportunity to negotiate a manageable set of strategic priorities. The EU is India’s largest trading partner, accounting for around 13 per cent of India’s total trade in goods in 2017. India contributes around 2.3 per cent of total EU trade and is the EU’s ninth biggest trade partner. Trade in goods between the EU and India grew by three times over 2002-18, from €28 billion to €91 billion. Services are also an important component of EU-India trade. Eurostat data shows that Indian services exports to the EU were €16.6 billion in 2018, while imports were €17.1 billion. The sector has also attracted foreign direct investment from the EU, including Germany, the Netherlands, France, Italy and Belgium, as well as the UK. Sticking points Talks between the EU and India broke down in 2013 after it became clear that reaching an agreement on the demands for tariff reductions and market access, as well as the inclusion of social, environmental and human rights clauses would be impossible. Discussions resumed in 2018, which led to the declaration of an EU-India strategic partnership. While this agreement helped to resume the talks, it mainly reaffirmed current ties rather than tackling any of the issues that caused the trade agreement discussions to stall initially. From the EU’s perspective, the main sticking points were drug patents, tariffs for second-hand cars, agriculture, services, rules of origin and an unacceptable list of sensitive items. The EU is adamant about negotiating a stronger intellectual property regime and a sustainable development chapter with social and environmental clauses, which India is unwilling to include in the trade agreement. Plus, the EU wants detailed provisions for investor-state dispute settlement (ISDS) after India cancelled 20 bilateral investment protection treaties with individual EU countries in 2016. The ISDS demand is not acceptable to India and current regulations require foreign investors to resolve their problems in Indian courts for a period of five years before pursuing a claim under international law. India views the proposed trade deal as an opportunity to address issues it has with the way the two sides trade in services. In particular, India wants more visas to be granted to its skilled workers in the services industry. This has been a longstanding demand. After Brexit, this demand is unlikely to fade. But, at a time when all EU member states are grappling with a “migration crisis” any loosening of visa rules is highly unlikely. India has also been demanding status as a “data-secure nation”, which will reduce compliance costs for Indian software providers. But, given EU concerns over regulatory norms and data-privacy standards it is unlikely that the EU will agree to this demand. Opportunity for a UK trade deal? The UK is among India’s main trading partners from the EU bloc. Trade totalled €13.6 billion in 2018, accounting for 17 per cent of India’s overall trade with the EU. Moreover, trade between India and the UK increased at an average rate of 8.8 per cent a year between 2002 and 2018. Machinery and transport equipment constitute 40 per cent of India’s exports, and accounts for nearly 20 per cent of total UK’s trade with India. The UK’s exports of alcoholic beverages also registered a significant increase, from €14m to €162m from 2002-18. The lack of progress in EU-India trade talks might just be an opportunity for the UK to launch its own negotiations for a trade deal with India. From an economic perspective, India is an attractive trade partner. It is projected to be the world’s fastest growing economy, with an annual GDP growth rate of around 6.5 per cent. In the UK, GDP is predicted to grow by a mere 1.5 per cent in 2019. India is also home to almost one-fifth of the world’s population. It could be a strategic partner for the UK in Asia, presenting an opportunity to increase Britain’s soft power in the region. From India’s perspective, a trade deal with the UK could be an opportunity to increase pressure on other Asian countries, especially China, to liberalise their trade. This will also help India’s geopolitical considerations in the region given the history of tense diplomatic relations with Pakistan. And it could help strengthen India’s Commonwealth ties. But other issues remain. The UK and India would still have to agree on reducing tariffs on their respective imports. Visa numbers and intellectual property would also be issues for the UK, as they were with the EU, and could yet prove contentious. So free trade talks between the UK and India could still be long and drawn out. Recent political developments, however – including Brexit, eurozone uncertainty, sluggish global growth rates and trade tensions from the Trump administration’s pursuit of a protectionist agenda – all have serious implications for future trade talks. These could well nudge the partners to review their red lines and return to the negotiating table. (Sangeeta Khorana is Professor of Economics, Bournemouth University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

A trade deal with UK will help India’s geopolitical considerations in South Asian region

The European Union (EU) on Sunday welcomed India&#39;s decision to withdraw high-value banknotes in a bid to root out black money.

Ridding the system of &#39;&#39;black component&quot; and bringing transparency will strengthen Indian economy and aid growth, the EU said.

Vice-president of European Commission Jyrki Katainen complimented the Indian government for its resolve to roll out the Goods and Services Tax (GST) along with other reform measures, PTI reported.

Katainen, who is on a visit to India over the&nbsp;EU-India Broad-based Trade and Investment Agreement (BTIA), said that the fight against tax dodgers will boost India&#39;s financial system.

&quot;All the measures which will reduce black economy are always good for people and the financial system,&quot; he told PTI following the Indian government&#39;s decision to withdraw Rs 500 and 1,000 notes.

He called the GST a &quot;very ambitious&quot; and &quot;very necessary&quot; move to reform the tax structure in India and to boost investor&nbsp;confidence.

Investors from European countries are bringing &quot;white clean money&quot; to India he said.

The two-way commerce in goods between India and the EU was USD 98.5 billion in 2014-15, PTI reported. If the BTIA or the free trade agreement was finalised, European investments into India are set to increase manifold, Katainen said.

India&#39;s existing trade and investment agreement with The Netherlands will come to an end in two weeks and similar pacts with several other EU countries will expire in coming months making it difficult for the European corporates to make fresh investment in India, he stressed.

As per European Union law, no member country now can go for bilateral trade and investment pact with India as the grouping is in negotiations for an EU-India Broad-based Trade and Investment Agreement (BTIA), the PTI report stated.

India&#39;s trade and investment pact with 23 countries is likely to expire by the end of next year.

Launched in June 2007, negotiations over the proposed agreement have seen many hurdles but the EU has now shown an inclination to restart talks.

(WION with inputs from PTI)

EU's vice-president said fight against tax dodgers and those having ill-gotten wealth will pay dividends and strengthen the financial system

The European Union (EU) on Sunday welcomed India's decision to withdraw high-value banknotes in a bid to root out black money. Ridding the system of ''black component" and bringing transparency will strengthen Indian economy and aid growth, the EU said. Vice-president of European Commission Jyrki Katainen complimented the Indian government for its resolve to roll out the Goods and Services Tax (GST) along with other reform measures, PTI reported. Katainen, who is on a visit to India over the EU-India Broad-based Trade and Investment Agreement (BTIA), said that the fight against tax dodgers will boost India's financial system. "All the measures which will reduce black economy are always good for people and the financial system," he told PTI following the Indian government's decision to withdraw Rs 500 and 1,000 notes. He called the GST a "very ambitious" and "very necessary" move to reform the tax structure in India and to boost investor confidence. Investors from European countries are bringing "white clean money" to India he said. The two-way commerce in goods between India and the EU was USD 98.5 billion in 2014-15, PTI reported. If the BTIA or the free trade agreement was finalised, European investments into India are set to increase manifold, Katainen said. India's existing trade and investment agreement with The Netherlands will come to an end in two weeks and similar pacts with several other EU countries will expire in coming months making it difficult for the European corporates to make fresh investment in India, he stressed. As per European Union law, no member country now can go for bilateral trade and investment pact with India as the grouping is in negotiations for an EU-India Broad-based Trade and Investment Agreement (BTIA), the PTI report stated. India's trade and investment pact with 23 countries is likely to expire by the end of next year. Launched in June 2007, negotiations over the proposed agreement have seen many hurdles but the EU has now shown an inclination to restart talks. (WION with inputs from PTI)

India's crackdown on black money will help financial system: EU