This study presents an analysis of trade and investment relations between the EU and India and th... more This study presents an analysis of trade and investment relations between the EU and India and the possible impact of the free trade agreement (FTA), currently under negotiation. The methodology applied to assess the impact of the FTA is based upon the Sussex Framework and the concepts of deep and shallow integration. The EU-Indian relations are outlined in the context of multilateral, bilateral and regional frameworks. The study is divided into four sections. The first chapter sets the EU – India relations in a political context, elaborating on the legal basis of advancing stages of collaboration that led to the strategic partnership. The second chapter examines the Common Commercial Policy emphasising on the instruments and criteria applied by the EU in its external trade policy. Indian trade policy is briefly presented to assess the extent to which two partners’ policy positions overlap in regards to the FTA. The third chapter provides an overview of trade and investment patterns and flows between the EU and India over the last decade with the focus on trade in goods and services and on foreign direct investments (FDI). This chapter also elaborates on the specificity of Indian business environment leading to conflicts of interests with the EU. Chapter four provides an impact assessment of the FTA on the basis of the theory of deep and shallow integration. The potential impact is evaluated on the basis of selected issues which have caused a stalemate in the ongoing negotiations, namely tariff dismantling, pro- mobility clauses within the liberalisation of services, labour standards and intellectual property rights. The findings of this study indicate that while the EU-India FTA remains a viable opportunity for both partners, the potential benefits are not always apparent for the stakeholders. For the EU, the FTA will prove beneficial only if it is followed by deep integration, implying a higher level of convergence of standards and elimination of non-technical barriers to trade in India. This causes resistance on the Indian side as in their view it infringes upon domestic methods of governance and implies costly reforms which India could not handle currently due to its high fiscal deficit and currency volatility. The EU is consistent in exercising its external trade policy in a sense that it has maintained its demands on the sustainable development chapter and liberalisation on FDI. However, the EU external trade policy is not fully effective since the EU has not been able to obtain substantial concessions from India on the most “comprehensive” elements disputed. The EU has low visibility in India and the FTA is perceived negatively by many stakeholders who feel excluded from the negotiation process — these factors further undermine the EU’s legitimacy and effectiveness.
This study presents an analysis of trade and investment relations between the EU and India and th... more This study presents an analysis of trade and investment relations between the EU and India and the possible impact of the free trade agreement (FTA), currently under negotiation. The methodology applied to assess the impact of the FTA is based upon the Sussex Framework and the concepts of deep and shallow integration. The EU-Indian relations are outlined in the context of multilateral, bilateral and regional frameworks. The study is divided into four sections. The first chapter sets the EU – India relations in a political context, elaborating on the legal basis of advancing stages of collaboration that led to the strategic partnership. The second chapter examines the Common Commercial Policy emphasising on the instruments and criteria applied by the EU in its external trade policy. Indian trade policy is briefly presented to assess the extent to which two partners’ policy positions overlap in regards to the FTA. The third chapter provides an overview of trade and investment patterns and flows between the EU and India over the last decade with the focus on trade in goods and services and on foreign direct investments (FDI). This chapter also elaborates on the specificity of Indian business environment leading to conflicts of interests with the EU. Chapter four provides an impact assessment of the FTA on the basis of the theory of deep and shallow integration. The potential impact is evaluated on the basis of selected issues which have caused a stalemate in the ongoing negotiations, namely tariff dismantling, pro- mobility clauses within the liberalisation of services, labour standards and intellectual property rights. The findings of this study indicate that while the EU-India FTA remains a viable opportunity for both partners, the potential benefits are not always apparent for the stakeholders. For the EU, the FTA will prove beneficial only if it is followed by deep integration, implying a higher level of convergence of standards and elimination of non-technical barriers to trade in India. This causes resistance on the Indian side as in their view it infringes upon domestic methods of governance and implies costly reforms which India could not handle currently due to its high fiscal deficit and currency volatility. The EU is consistent in exercising its external trade policy in a sense that it has maintained its demands on the sustainable development chapter and liberalisation on FDI. However, the EU external trade policy is not fully effective since the EU has not been able to obtain substantial concessions from India on the most “comprehensive” elements disputed. The EU has low visibility in India and the FTA is perceived negatively by many stakeholders who feel excluded from the negotiation process — these factors further undermine the EU’s legitimacy and effectiveness.
Uploads
Papers by Natalia Mank
The study is divided into four sections. The first chapter sets the EU – India relations in a political context, elaborating on the legal basis of advancing stages of collaboration that led to the strategic partnership. The second chapter examines the Common Commercial Policy emphasising on the instruments and criteria applied by the EU in its external trade policy. Indian trade policy is briefly presented to assess the extent to which two partners’ policy positions overlap in regards to the FTA. The third chapter provides an overview of trade and investment patterns and flows between the EU and India over the last decade with the focus on trade in goods and services and on foreign direct investments (FDI). This chapter also elaborates on the specificity of Indian business environment leading to conflicts of interests with the EU. Chapter four provides an impact assessment of the FTA on the basis of the theory of deep and shallow integration. The potential impact is evaluated on the basis of selected issues which have caused a stalemate in the ongoing negotiations, namely tariff dismantling, pro- mobility clauses within the liberalisation of services, labour standards and intellectual property rights.
The findings of this study indicate that while the EU-India FTA remains a viable opportunity for both partners, the potential benefits are not always apparent for the stakeholders. For the EU, the FTA will prove beneficial only if it is followed by deep integration, implying a higher level of convergence of standards and elimination of non-technical barriers to trade in India. This causes resistance on the Indian side as in their view it infringes upon domestic methods of governance and implies costly reforms which India could not handle currently due to its high fiscal deficit and currency volatility. The EU is consistent in exercising its external trade policy in a sense that it has maintained its demands on the sustainable development chapter and liberalisation on FDI. However, the EU external trade policy is not fully effective since the EU has not been able to obtain substantial concessions from India on the most “comprehensive” elements disputed. The EU has low visibility in India and the FTA is perceived negatively by many stakeholders who feel excluded from the negotiation process — these factors further undermine the EU’s legitimacy and effectiveness.
The study is divided into four sections. The first chapter sets the EU – India relations in a political context, elaborating on the legal basis of advancing stages of collaboration that led to the strategic partnership. The second chapter examines the Common Commercial Policy emphasising on the instruments and criteria applied by the EU in its external trade policy. Indian trade policy is briefly presented to assess the extent to which two partners’ policy positions overlap in regards to the FTA. The third chapter provides an overview of trade and investment patterns and flows between the EU and India over the last decade with the focus on trade in goods and services and on foreign direct investments (FDI). This chapter also elaborates on the specificity of Indian business environment leading to conflicts of interests with the EU. Chapter four provides an impact assessment of the FTA on the basis of the theory of deep and shallow integration. The potential impact is evaluated on the basis of selected issues which have caused a stalemate in the ongoing negotiations, namely tariff dismantling, pro- mobility clauses within the liberalisation of services, labour standards and intellectual property rights.
The findings of this study indicate that while the EU-India FTA remains a viable opportunity for both partners, the potential benefits are not always apparent for the stakeholders. For the EU, the FTA will prove beneficial only if it is followed by deep integration, implying a higher level of convergence of standards and elimination of non-technical barriers to trade in India. This causes resistance on the Indian side as in their view it infringes upon domestic methods of governance and implies costly reforms which India could not handle currently due to its high fiscal deficit and currency volatility. The EU is consistent in exercising its external trade policy in a sense that it has maintained its demands on the sustainable development chapter and liberalisation on FDI. However, the EU external trade policy is not fully effective since the EU has not been able to obtain substantial concessions from India on the most “comprehensive” elements disputed. The EU has low visibility in India and the FTA is perceived negatively by many stakeholders who feel excluded from the negotiation process — these factors further undermine the EU’s legitimacy and effectiveness.