India, EU failed to realise trade potential: Germany

The Times Of India,  | Oct 10, 2017, 

NEW DELHI: India may believe its relationship with Europe is on an upswing, but Germany says India and Europe have "failed" to realise their potential.

Addressing journalists in an annual India-Germany media dialogue, Martin Ney, German ambassador expressed his disappointment. "India and EU have many reasons to increase their cooperation but I am sorry to say we have failed to live up to the potential. So far, there is no decision to resume negotiations for free trade and investments protection agreements."

In an official statement later in the day, the ambassador was quoted as saying, "On the EU-India summit, there is no decision to resume negotiations on a free trade agreement including investment protection, despite the possibility being at hand. There was no such decision taken at the last EU-India summit in March 2016. EU and Indian leaders did not take such a decision during the summit two days ago."

Earlier this summer, during Prime Minister Narendra Modi's visit to Germany, it was expected that the changed geopolitical circumstances would fire both sides into looking at the FTA negotiations with greater flexibility. This was indicated strongly during the India-Germany summit, with officials then saying talks would resume as soon as July, which proved to be wrong.

In the run-up to the summit here last week, there were some feeble attempts to restart negotiations, but it has been clear there is very little energy on either side to revisit their stated positions. Neither side is thinking strategically about trade.

The Modi government, for all its focus on investment, has been remarkably curmudgeonly on trade. The EU is refusing to entertain India's interests on services and movement of people.


But there are good reasons for India to engage EU in a deeper way than before. China is building railway tracks right up to Europe's door, bringing with it a very different way of governance and values. If India doesn't set itself up as an easier and more attractive partner, China can stitch up its FTA and bully EU into lifting the arms embargo. That would effectively make EU a no-go strategically for India.


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