Bilateral Trade And Investment Agreement Upsc

September 13, 2021

Why is the free trade agreement between India and the EU not accelerating when it has been in talks for a long time? Discuss mutual concerns and the rest of their journey. Machinery and transport account for 40% of India`s exports and account for almost 20% of the UK`s total trade with India. UK exports of alcoholic beverages also rose sharply in 2018 to €162 million. The EU is India`s largest trading partner and accounted for around 13% of India`s total trade in goods in 2017. India is the EU`s 9th largest trading partner. Services are also an important part of trade between the EU and India. India`s services exports to the EU amounted to €16.6 billion in 2018, while imports amounted to €17.1 billion. The sector has also attracted foreign direct investment from the EU. India and the EU expect to promote bilateral trade by removing barriers to trade in goods and services as well as investment in all economic sectors. 4)Liberalisation of services in mode 1 (cross-border trade) and modus 4 (presence and free movement of natural persons) These negotiations are in line with the commitment made by political leaders at the 7th India-EU Summit held in Helsinki on 13 October 2006 to launch negotiations on a large-scale trade and investment agreement on the basis of the report of the India-EU High Level Technical Group. The separation of a separate investment protection agreement from the bilateral free trade agreement – formally called the Large-Scale Free Trade and Investment Agreement (BTIA), which is currently under negotiation, will make it possible to sign the investment protection pact even in the absence of progress under the BTIA.

Talks between the EU and India broke down in 2013, after it became clear that it would be impossible to reach agreement on demands for tariff reductions and market access, as well as on the inclusion of social, environmental and human rights clauses. Talks resumed in 2018, resulting in the declaration of a strategic partnership between the EU and India.