India, EU will upgrade ties; trade deal still in the works, Pg12

Key Highlights:

• The 16th EU-India Summit is scheduled for January 27, focusing on a Free Trade Agreement (FTA).
• A new Defence and Security partnership agreement is expected to be signed.
• An MoU on mobility will address the movement of skilled workers, students, researchers, and seasonal workers.
• A joint statement will outline a new strategic roadmap for the India-EU partnership for the next five years.

Detailed Insights:

• The FTA negotiations have been ongoing for over two decades, facing challenges related to agriculture, carbon border taxes, service delivery, and non-tariff barriers.
• The Defence and Security agreement is only the third such comprehensive agreement the EU has concluded in Asia, after Japan and the Republic of Korea, establishing a framework for cooperation.
• The security partnership highlights differing approaches between India and the EU regarding Russia, particularly concerning the Russia-Ukraine conflict and India's oil trade with Russia.
• The MoU on mobility aims to facilitate the movement of four categories of workers, with the number of individuals admitted to each EU country determined by the respective country.
• Both sides are committed to advancing the India Middle East Europe Economic (IMEC) Corridor, with feasibility studies planned to assess its viability and implementation.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Non-Tariff Barriers: Trade barriers that restrict imports or exports through mechanisms other than tariffs.
• Memorandum of Understanding (MoU): A nonbinding agreement between two or more parties outlining a set of principles.