What is India-EU Trade and Technology Council?

Over 15 years and 16 rounds of talks later, India and the European Union finally decided to launch a joint trade and technology council.

And it comes at a time when the EU and India are not at the same page over the Russian attack on Ukraine. But they agreed on other issues which were dragging the launch of the trade mechanism for years.

The deal was signed during the visit of President of the European Commission, Ursula von der Leyen on April 25. 

The importance of the agreement can be gauged from the fact that the United States is the only other country that has a technical agreement with the EU similar to the one signed with India.

And for India, the decision to set up such a council will be the first with any of its partners. This strategic coordination mechanism will allow the two partners to address challenges in trade, trusted technology and security, deepening cooperation in these fields. This trade mechanism will allow both sides to work on fields such as 5G, artificial intelligence, climate modelling and health-related technology.

The 27 member EU is India's third-largest trading partner, accounting for €62.8 billion worth of trade in goods in 2020 or 11.1% of total Indian trade, after China at 12% and the US at 11.7%. The EU is the second-largest destination for Indian exports (14% of the total) after the US. 

Between 2007 and 2013, both the sides held 16 rounds of formal talks for the free trade agreement but a deal could not be agreed upon due to stark differences on several issues.

They have now agreed that rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement. 

The Trade and Technology Council will provide the political steer and the necessary structure to operationalise political decisions, coordinate technical work, and report to the political level to ensure implementation and follow-up in areas that are important for the sustainable progress of European and Indian economies.

The council will comprise working groups led or co-led by relevant departments, services or agencies to operationalise the political decisions into deliverables.

For instance, the US and the EU have established 10 such Working Groups, which are chaired by relevant US agencies and European Commission services. 

These working groups focus on tech standards, climate and green tech, secure supply chains, export controls and investment screening among others.  

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