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FTA talks re-launched between India and EU
Why is it in news?
- India and the European Union (EU) agreed to re-launch free trade negotiations by resuming talks that were suspended in 2013.
- The proposed talks are formally known as 'Bilateral Trade and Investment Agreement (BTIA).'
- European Union is India's largest trading partner block.
Details:
- The E.U.-India leaders meeting also discussed COVID recovery plans and vaccine cooperation.
- Both adopted a Connectivity Partnership document outlining plans to cooperate on digital and infrastructure projects.
- They also signed the contract for the second tranche of $150 million from the E.U. for the Pune Metro rail project.
More about BTIA:
- The free trade talks, officially known as BTIA had started between India and EU in 2007.
- The BTIA was proposed to cover trade in goods, services and investments.
- In 2013, India and the EU suspended the talks due to differences over variety of issues.
- EU’s Demands under BTIA:
(1) Removal or reduction in tariffs on European cars, wines and spirits and greater market access.
(2) High level of investment protection.
(3) A stronger intellectual property regime.
(4) A sustainable development chapter with social and environmental clauses.
- India’s Demands under BTIA:
(1) Access for more visas to be granted to its skilled workers in the services industry.
(2) Recognition of a data secure country (which will reduce compliance costs for Indian software providers).
Source: The Hindu.