European Union pivots east as free trade deal with USA stalls

EU officials in India

GETTYEU officials Donald Tusk and Jean Claude Juncker with Indian PM Narendra Modi

Negotiations on the proposed EU-India Broad-based Trade and Investment Agreement (BTIA) started in 2007.

"I am pleased that the India-EU Horizontal Civil Aviation Agreement has now been operationalized".

The 14th India-EU Summit is being held in the national capital. Ltd for the purchase of train cars and the construction of metro stations-one of the largest EIB loans to India as well as "the largest-ever support to sustainable transport outside of Europe", an EIB statement said.

India and the European Union reiterated the importance of reconciling economic growth and environment protection and highlighted the importance of moving towards a more circular economic model that reduces primary resource consumption, a joint statement said.

The EIB confirmed plans to provide 800 million euros ($938 million) for renewable energy investment across India.

But the differences between the two sides came to the fore on issues of trade and investment.

Stating that the European Union continues to be India's largest trading partner, Modi, in his address to the media, said the 28-nation bloc was also one of the largest investors in India. "India was amongst the first countries to establish diplomatic relations with the European Economic Community in 1962". The pact is known as the Bilateral Trade and Investment Agreement (BTIA). After the Summit, also on 6 October, President Juncker will deliver the keynote address at an EU-India Business Forum, which will also be available live on EbS.

"Democracies of the world can be the ones to set ambitious global standards but only if we cooperate", Tusk said adding that he was confident India and the European Union could come together for "this ambitious and strategic cause".

Earlier, PM Modi welcomed Donald Tusk and European Commission President Jean-Claude Juncker at Hyderabad House.

The free trade agreement is to cover market access in goods, services and public procurement, as well as create a framework for investment protection, intellectual property and competition. Both the sides also agreed on cooperation on global and regional issues. Indian software service providers have specialised in offering back office and information technology (IT) services to European companies.

Mr. Juncker said, "Beyond the free flow of goods and services, we should also step up work to ensure the free flow of personal data between your great nation and the European continent. To use the words of President Juncker a few days ago, India-European Union relations today have a good wind in their sails!", said he.

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