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

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom