Visiting New Delhi this week (19-23 February) as the leader of a European Parliament delegation, the head of the Parliament delegation for EU-India relations Geoffrey Van Orden (ECR, UK) urged the Indian authorities to extend the bilateral investment agreements that are about to expire between India and several EU countries by six months. He stated that the absence of these treaties would complicate the EU-India free trade negotiations that have been in deadlock since 2013.
" The termination of bilateral investment treaties by India is a problem [with several EU countries]. We would like them to be extended by six months, and right now it is a hurdle in the free trade agreement discussions" Van Orden stated, as reported by The Times of India newspaper on Tuesday 21 February. "The EU wants an ambitious trade agreement, but India wants to pick and choose", he regretted.
India's decision in July 2016 to terminate 83 bilateral investment treaties with different countries will have an impact on the investment decisions of several big EU countries – its bilateral investment agreement with the Netherlands expired in November 2016, and its similar agreements with Germany and France will expire in March. While this decision has no immediate effect on existing investments, which will continue to be protected for 10-15 years, it could affect new investments.
The European Parliament delegation led by Van Orden also encouraged the Indian government to examine the EU-Canada free trade agreement (CETA) more closely and its reformed system of arbitration for disputes between investors and states – an issue which raised objections from the Indian side in its negotiations for a bilateral agreement on trade and investment with the EU (BTIA). According to the Indian press, India wants to incorporate its own model of investment agreement in the BTIA.
The 13th EU-India summit in Brussels on 30 March (see EUROPE 11522), did not enable the laborious BTIA talks to be relaunched. These were originally launched in 2007 but were put on hold in mid-2013 after 16 rounds of talks, ahead of the general elections in India in spring 2014 (which brought the current prime minister, Narendra Modi, to power). The two parties were not at that time able to iron out their differences on several key chapters (see EUROPE 10931).
The sticking points are still the same: the EU wants a more accommodating position from India with regard to its tariff ambitions (in the automobile sector, and wines and spirits), access to public procurement, and protection of geographical indications. The EU also want the Indian intellectual property system to be strengthened, especially in the pharmaceutical sector.
India wants better access to the EU market for its service providers. It also wants the EU to grant it the status of data protection country, which would authorise its IT industry to handle sensitive data (for example on patients in the health sector) from India. New Delhi also wants visa regimes to be eased to enable its qualified workers, especially its IT technicians, to be able to move freely in the EU. (Original version in French by Emmanuel Hagry)