Logo of Phnom Penh Post newspaper Phnom Penh Post - EU and India agree to restart trade talks at 'landmark' summit

EU and India agree to restart trade talks at 'landmark' summit

Content image - Phnom Penh Post
Indian Prime Minister Narendra Modi could push the EU to waive patents on Covid-19 jabs. AFP

EU and India agree to restart trade talks at 'landmark' summit

The EU and India agreed on May 8 to relaunch long-stalled trade talks in a major push to boost ties at a video summit held under the shadow of the Covid-19 pandemic battering the South Asian giant.

"The EU and India are opening a new important chapter in our relationship. We are the world's two largest democracies. We are natural partners," European Council chief Charles Michel said.

The devastating wave of infections sweeping India impacted the meeting by forcing Prime Minister Narendra Modi to scrap plans to fly to Portugal to see his European counterparts.

But the 27-nation bloc and the world's largest democracy remain determined to capitalise on growing momentum for closer relations.

European Commission chief Ursula von der Leyen hailed the decision to restart trade talks after an eight-year break as a "landmark moment".

EU countries have sent medical equipment and drugs worth an estimated €100 million ($120 million) to India as part of international efforts to help it fight against the flood of Covid-19 cases.

Von der Leyen insisted that the bloc "stands firmly at the side of India in this most challenging time" and pledged that "further assistance will follow".

A top official at India's external affairs ministry said Modi had pushed the EU to support an Indian and South African proposal to suspend Covid-19 vaccine patents after US President Joe Biden threw his weight behind the plan.

EU leaders have expressed scepticism about the initiative, insisting the first move is for countries to open up to exporting doses.

"We will be watching the evolving EU position on this particular issue," senior Indian official Vikas Swarup said.

The two vaccine-producing powerhouses did agree to try to work together to make sure global supplies are maintained and the world is better prepared for future pandemics.

"We agreed that defeating the Covid-19 pandemic through global cooperation and solidarity remains our priority and underlined our commitment to work together to ensure a better, safer, sustainable and inclusive recovery," a joint statement said.

While the pandemic cast a dark cloud over the summit, the key announcement was the restarting of talks for a wide-ranging free trade deal that have been suspended since 2013.

The two sides agreed to simultaneously launch negotiations on separate deals to protect investments and regionally specific products.

They also signed off on a "connectivity" partnership to reinforce infrastructure links and said they would push to cooperate more on developing cutting-edge technology like artificial intelligence.

The negotiations on the trade deal were halted after getting stuck on issues such as cutting tariffs and access for Indian workers to Europe.

An Indian official said there was no timetable for when the fresh talks would begin.

It remains to be seen if India is now willing to drop an approach viewed as deeply protectionist by the EU to seal a deal this time round.

Britain's departure from the bloc has also created another rival for Brussels as London makes its own play to bolster trade with India.

The British government on May 4 said it would start formal free talks with India later this year after the two sides agreed an initial package to boost trade and investment.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted