INDIA & THE EUROPE UNION - New Strategic Partnership
by K. Gajendra Singh
In a joint press statement issued in The Hague on 8 November after the 5th India- European Union (EU) Summit between Indian team led Prime Minister Manmohan Singh and the EU led by current European Council President and Dutch Prime Minister Jan Peter Balkenende, the two sides unequivocally condemned all forms of terrorism. India and the EU also outlined a five-point action plan to combat the scourge of terrorism and resolved to enhance collective action to fight proliferation of weapons of mass destruction.
The Strategic Partnership Agreement signed by the two sides puts India at par with EU’s special partners; the United States , Canada , Japan , China and Russia . The EU is both the leading foreign investor in India and its biggest trading partner.
India and the EU would set up a mechanism for a dialogue on disarmament and non-proliferation to signal their new “strategic partnership”. The agreement says that disarmament and non-proliferation are articles of faith for both sides despite differences in approach. ” India and EU are resolved to be partners in promoting global peace and security and remain committed to the goal of universal disarmament.” The two sides call for effective control measures for dual use goods ( that can be used for civilian and military purposes) can play an important role in preventing proliferation.
The two sides earlier held wide-ranging discussions dealing with issues of terrorism, proliferation, UN reforms and the situation in Iraq , Afghanistan and the Middle East .
As part of the action plan, the two sides will seek to step up international efforts to combat terrorism, reduce the access of terrorists to financial and other economic resources, ensure effective systems of border control, address issues which create an environment conducive to terrorism and explore ways to strengthen counter-terrorism dialogue by covering other security-related issues. “The fight against terrorism must be carried out in full respect of human rights, fundamental freedoms and the rule of law,” with both sides continuing to “support the work of the United Nations to ensure universal adherence to, and full implementation of, all UN Security Council resolutions,” including the Comprehensive Convention on International Terrorism, sponsored by India in the United Nations.
They also voiced concern over the current campaign of terrorist violence in Iraq ; they said impeded the path to political progress and economic reconstruction of that country. Both sides agreed to continue their support to the emergence of a stable, secure, representative and democratic Iraq . India and the EU will encourage positive engagement and regional support from Iraq ’s neighbours for the political and reconstruction process in Iraq , the statement said.
Affirming their strong commitment to the reconstruction and stabilisation of Afghanistan in partnership with the government in Kabul , it welcomed the process of democratisation, especially the October 9 Presidential elections. However, they expressed concern over the continuing threats to stability and terrorist acts, particularly in South and Southeast Afghanistan . They noted that the proliferation of poppy cultivation and drugs production was a major problem, and countering it was a priority issue.
Reviewing the situation in the Middle East, they observed that Israeli intention to withdraw from all Gaza settlements and parts of the West Bank could constitute a step towards achieving the two State solution and had the possibility of restarting progress on the Quartet Road Map, provided it took place in accordance with the relevant UN Security Council resolutions and it does not involve a transfer of settlement activity to the West Bank.
Welcoming the commitment of Sri Lanka and the LTTE to a peaceful solution to the ethnic conflict and encourage the parties to resume peace talks without delay, the EU shared India’s stand that a peace settlement could only be sustained if it respected the legitimate rights and involvement of all ethnic groups, preserves the unity, sovereignty and territorial integrity of Sri Lanka and was based on the principles of democracy and human rights.
On Nepal , both sides advocated reopening of peace negotiations between the Nepalese government and Maoist insurgents. “We support an early settlement of the crisis, based on multiparty democracy and constitutional monarchy,” the statement said. They shared the view that progress towards democracy in Myanmar would contribute to both peace and prosperity in the country. Strongly supporting the UN Framework Convention on Climate Change, they emphasised the central role of its Kyoto Protocol.
The EU expressed its interest in the Indian unmanned lunar exploration mission Chandrayan-1 as the two sides agreed to support and encourage cooperation between ISRO and ESA. Both sides observed that their commitment to democracy, pluralism and rule of law and to multilateralism in international relations was a factor for global stability and peace The 25-member EU welcomed “the positive evolution” of the relationship between India and Pakistan and said the grouping looked forward its consolidation through ongoing composite dialogue in an atmosphere free from menace of terrorism and violence.
The European Commission had issued a communication to the European Council on June 14, 2004, outlining a policy for developing an “India-EU Strategic Partnership”. It recognized India ’s rapid metamorphosis into a regional and global leader, playing an increasingly important role on all fronts, and the exponential growth in the scope and intensity of its relationship with the EU, which necessitated a re-evaluation of the existing framework and develop the partnership with a strategic edge.
Before leaving New Delhi for the Summit , Manmohan Singh described India and EU as natural partners, and said, “in recognition of India ’s growing stature and influence, the European Union has proposed a strategic partnership with India . We warmly welcome the development.” Singh said that his discussions with the EU leadership would be reflected in a comprehensive joint statement that would be issued at the end of the summit. He added that Europe was an important political and strategic factor in the international sphere. Recently the EU’s membership went up from 15 to 25, thus erasing the fault line that had divided the European continent for over a century.
The Prime Minister said that the EU was emerging as a politically influential, economically powerful and demographical diverse regional entity in the world, adding that ” Our relations are based on shared values — democracy, pluralism, rule of law, free press and independent judiciary. Our partnership has evolved over the years from economic development and cooperation to broad-based engagement on a wide range of issues — globalisation, terrorism, proliferation, energy and environment.” He added that “It (EU) is an important source of technology and home to a large and influential Indian Diaspora.” During his stay at the Hague , Singh also had an interactive session with prominent CEOs of EU business and industry and senior representatives of Indian industry to identify opportunities for greater trade and investment in India .
EU-India Summits
This was the fifth Summit between the two sides which was first instituted in Lisbon in 2000 and the upgradation of the relationship to Strategic Partnership is a milestone in the history of India-EU relations.
The 4th Summit was convened on November 29, 2004 in New Delhi at which the two sides reviewed developments since the previous Copenhagen Summit and renewed their commitment to democracy, pluralism, the protection and promotion of human rights and the strengthening of multilateral institutions, as embodied by the UN in particular. They also reiterated their determination to fight terrorism in all its manifestations, and called upon all nations to fulfill their commitments under UNSC Resolution 1373. Among the concrete achievements of the Summit were the following: a) the signing of a Customs Cooperation Agreement, b) a Financing Agreement for the India-EU trade and Investment Programme (TIPP); and c) the decision to commence negotiations on a Maritime Agreement, and on an Agreement to formalize India ’s equitable participation in the Galileo Joint Undertaking.
Despite the initial strident criticism by some European countries over India ’s nuclear tests in 1998, there was now recognition in the EU of India’s “impeccable record in non-proliferation”.
While the EU support would be helpful in India ’s quest to join United Nation’s Security Council (UNSC), for the EU, India could be a multilateralist ally in resisting what they see as the current US administration’s unilateralism. “It is important that we start coordinating with India , not only to strengthen the U.N. but also to make preparations together for international meetings such as those on the protection of women and climate change,” an EU official said recently.
European Affairs Minister Atzo Nicolai of Holland, which holds the rotating presidency said that the EU was encouraged by the “shifting parameters in India-Pakistan relations during the last months” but added that “At the summit the EU will encourage India to make progress in agreeing on substantive confidence-building measures … but we cannot expect a rapid progress: a cautious, gradual approach is needed.”
The EU also got a firm commitment from India to participate in its multibillion-dollar Galileo navigation satellite project, which is due to come on line in 2008 as an alternative to the U.S. Global Positioning System (GPS). China has put up 230 million euros to join. India had mentioned a sum of 300 million euros.
The United Progressive Alliance government headed by Singh has already announced that it would set up economic zones with advantageous taxes, tariffs and labour laws to encourage foreign investment. Singh, who was the architect of reforms in early 1990s has good rapport in the west, but he is expected to further cut red tape and scrap rules that restrict foreign investors to minority shareholdings in sectors such as civil aviation and financial services.
EU-India Economic Relations
India established diplomatic relations with EU in early 1960s, when it was known as European Economic Community . The progress in economic relations has been rapid. EU-India trade has grown from € 4,4 billion in 1980 to €28.4 billion in 2003. Indian exports amounted to €14 billion (covering mainly textiles/clothing, agricultural products and chemicals) while exports to India amounted to €14.5 billion (covering mostly machinery and chemical products). Indian exports benefit from reduced tariffs under the Generalised System of Preferences. Trade with the EU represents almost a quarter of Indian’s exports and imports. But it is just 1.6% of total EU imports of goods and 0.8% of import of services. But EU invests 10 times more in China and its trade is 5 times larger than India .
The economic exchanges are covered by 1) Agreement on Trade and Textiles, 1986 (amended in 1991 and 1992), Memorandum of Understanding (MOU) on Technical Cooperation in Electronics and New Technology, 1990, Third Generation Cooperation Agreement on Partnership and Development, 1994, MOU on Mutual Market Access in Textiles, 1994, MOU on EU-India Economic Cross-Cultural Programme, 1996, Financing Agreement on Support to Health and Family Welfare Sector Development, 1997, Financing Agreement on Maritime Transport, 1999 .
A Science and Technology Agreement was signed on 23 November 2001 which entered into force on 14 October 2002. It has the aim of enhancing scientific co-operation with India and extending it beyond the more traditional subjects. The Agreement covered sustainable development by themes; health, agriculture, natural resources management and includes a legal framework for the protection of the intellectual property rights. A Customs Co-operation Agreement was signed on 28 April 2004.The scope of the agreement is co-operation between the parties with a view to simplifying customs procedures and developing trade facilitation actions in customs matters in accordance with international standards
EU and Asia
Together, the EU with its 25 members is an indispensable partner for economic prosperity and peace. The EU now has some 455 million people with a combined GDP of 10 trillion euros. It is also in the EU’s interest to cooperate with the large up and coming economies of Asia i.e. China and India .The Asian region now produces 23 percent of global GDP, and the share is rising. According to a report by Goldman Sachs, the dollar size of the Chinese economy would surpass that of UK and Germany by 2007, while India would surpass France by 2020 and Germany by 2023.
To meet the suffocating US challenge, apart from ensuring that the EU remains a major economic player by making full use of the internal market and implementing social and economic reforms, it must develop a much more comprehensive dialogue with Asia than it has done so far. Europeans should see beyond a zero-sum choice between human rights and trade. Asia’s development is good for Asia, good for the EU and good for the world. Relations between the EU and Asia must be a matter of give and take.
Apart from international trade, Asia and Europe must work together, for example, in an effective and legitimate multilateral system, with a strong United Nations at its core. It is indeed difficult to justify low Asian representation in the Security Council, when a EU with less than half the population of India is represented by two, and could even have three of its members in it.
Asia is an indispensable partner in the struggle against the proliferation of weapons of mass destruction. North Korea and Pakistan have illegally exported knowledge and assets to countries with nuclear ambitions. China’s important role in the six-party talks over the Korean crisis is very important. China has also supported EU efforts to resolve peacefully US Iran tensions over the latter’s Uranium enrichment programme . But, unfortunately, China ’s role in non-proliferation has also been quite questionable. Likewise, the campaign against terrorism cannot be fought successfully without cooperation between the EU and Asian countries
EU Problems
Of course EU itself is facing many problems consequent to its expansion, which continues. Many EU diplomats, who are involved in making EU foreign policy decisons, say that trying to reach consensus has become “a nightmare.” Since the historic expansion of the EU five months ago - which brought in Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia, the new members are against other countries wishing to join: Slovenia against Croatia, Cyprus against Turkey, Hungary against Serbia. Former Communist members who used to get orders from Moscow have little tradition of working in a give and take system of EU.
UK , whose entry was long barred by French President Gen Charles de Gaulle, still remains a kind of USA ’s Trojan horse. USA also tried to play new members like Poland against older EU members calling the former the New Europe .The differences between USA and France and Germany and among EU member states came out in open during the US invasion of Iraq . Many new EU members who joined with USA in the ‘Coalition of the Willing” are now not that willing .
“It has always been difficult reaching consensus among the old 15 countries,” said one EU diplomat, “But this time it is different.” But when the EU expands further by adding Bulgaria , Romania (likely in 2007) and Turkey , it will become even more difficult. Of course the Christian nature of the EU and the tussle between the Christian Right and the secular social democrat parties became a running debate when EU Commission recommended in early October that Turkey be given a date for commencing negotiations to join EU. The question of Turkey ’s admission into EU would remain a Gordian’s knot to cut.