According to people familiar with the matter, Union commerce minister Piyush Goyal will hold a virtual meeting with Valdis Dombrovskis, the European Commission executive vice-president and commissioner of trade, on April 29, boosting the prospects for a firm start of negotiations on an India-EU broad-based trade and investment agreement.
This is their second meeting in less than three months; the first was on February 5, when Piyush Goyal hosted the first India-EU high-level dialogue, or HLD, during which the two sides extensively addressed the condition of bilateral trade and investment ties between India and the EU, as well as the path forward. Dombrovskis also expressed the EU's desire to resume negotiations for ambitious, substantive, and mutually beneficial trade and investment agreements during this meeting.
Given the strong support for the pact within the EU, New Delhi expects the negotiations for the India-EU trade and investment agreement to resume at the India-EU Summit on May 8, in Portugal's Porto. Due to a change in French President Emmanuel Macron's schedule, the summit could be pushed back one day to May 7.
During the visit of French Foreign Minister Jean Yves Le Drian, the subject came up for discussion, and he added weight to the forward movement by assuring his Indian counterparts, that Paris is committed to supporting the agreement. Last week's summit-level meeting between Prime Minister Narendra Modi and his Dutch counterpart Mark Rutte included a discussion of the India-EU trade agreement.
According to Indian officials, the two parties have agreed to hold separate trade and investment talks, because they believe it would be easier to reach an investment agreement. During the 2017-18 fiscal year, India's investment agreements with the majority of the EU's 27 members expired, resulting in higher investment costs and some confusion among European investors.
Officials say that the controversial problems of market access for an all-encompassing free trade agreement would take longer to resolve. India-EU trade talks began in June 2007 but have been frozen since May 2013, when both sides struggled to bridge the gaps on data protection and sustainable growth. However, during Prime Minister Boris Johnson's visit to India on April 25, both sides are more welcoming with the UK post-Brexit, aiming for a bilateral free trade deal with India.
Due to the increase in coronavirus cases, officials admit that the format of the India-EU Summit, which was to mark the resumption of trade and investment agreement negotiations, could be in doubt. PM Modi is expected to travel to Portugal for the summit, which will take place in Porto, the country's second-largest city after Lisbonbefore flying to France for a crucial bilateral visit.
The final decision on holding the in-person summit has yet to be made, according to an official, despite the fact that all of the leaders have been vaccinated against Covid-19, and the situation in Portugal is considered under control.
According to Reuters, Portugal imposed a curfew in January to combat the world's worst Covid-19 outbreak, but has since begun to remove restrictions, reopening several classrooms, restaurant and cafe terraces, museums, and hair salons.