NEW DELHI - The decision by India and the European Union to restart stalled talks on a free trade pact comes amid growing unease on both sides about China’s rise, according to analysts.
The decision was announced following a summit of EU leaders in Portugal last week, which Indian Prime Minister Narendra Modi joined via video conference.
The meeting was held days after the EU suspended efforts to ratify an ambitious investment agreement with China following tensions that have grown between the 27-member bloc and Beijing about its treatment of the Uyghur population in Xinjiang province.
Although reviving trade negotiations that were abandoned by India and Europe in 2013 will not be easy, the move is being seen as part of efforts by both sides to build closer ties in what analysts call a new “geopolitical and geo-economic environment.”
“The kind of questions that have been raised recently about China have propelled Europe and India to look at each other with a different set of priorities,” according to Harsh Pant, head of Strategic Studies at the Observer Research Foundation in New Delhi and Professor of International Relations at King’s College, London.
“Also post the pandemic, many countries are looking closely at the issue of overreliance on China in trade and Europe, in particular, has been over dependent on China. And from India’s perspective, the West is going to be a very important partner as it re-evaluates every aspect of its foreign policy from the standpoint of the China equation,” says Pant.
India has been moving to build deeper partnerships with countries like the United States, Japan and Australia following an eight-month military standoff with China along their disputed Himalayan borders. Although the standoff eased in March, tensions are still running high over several undemarcated stretches where both countries have deployed tens of thousands of troops.
Both India and the European Union struck an optimistic note after the summit. Indian foreign ministry spokesman Vikas Swarup said there was a strong economic rationale for relaunching trade talks as the European Union was India’s largest trading partner in 2019-20 with bilateral trade of about $ 90 billion. President of the European Council Charles Michel called it a "new important chapter" in ties.
"We agreed to resume negotiations for a balanced, ambitious, comprehensive and mutually beneficial trade agreement which would respond to the current challenges," according to a joint statement by both sides.
Read More at https://www.voanews.com/south-central-asia/eye-china-india-and-europe-restart-stalled-trade-talks
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