No schedule yet to restart negotiations on India-EU free trade pact: EU official
The 28-member European Union (EU) is “encouraged” by the political momentum the long-discussed India-EU free trade agreement (FTA) gained at the summit held between the two in Brussels at the end of March, but both sides have not been able to fix a schedule to restart negotiations as yet, an EU official said.Both sides have “outstanding issues” to sort out and “the European Commission offered India on several occasions and in different formats to create an adequate forum to discuss outstanding issues...to enable the process to move forward,” Daniel Rosario, a spokesman for the EU trade department, told a group of visiting Indian journalists on Monday.The last round of talks on India-EU FTA was held in 2013 and the discussions have remained deadlocked on issues such as tariffs on automobiles and wines and spirits, Rosario said.In the auto sector, EU is unhappy given that its exporters have to face Indian import duties of up to 100% on cars and car parts. And in the case of wines and spirits, European exporters face tariffs as high as up to 150%, Rosario said.He said the EU had put forward several proposals in 2013 to break the deadlock.“We suggested long transitional periods for their elimination or going as far as accepting asymmetric elimination of these duties in favour of India” in the case of automobiles, he said. In the case of wines and spirits, “the proposal made in 2013 was for a gradual if not complete elimination of these duties and taking into account the Indian sensitivities”, he said.“We clearly identified the areas where we expect India to make some movement and we offered some fora to go into some specific discussions to allow for the general discussion to move ahead and for the time being, this has not happened,” he added.When asked if the EU would agree to re-open negotiations from the start, Rosario said the EU could not “ignore all the work that has been done so far”.Despite the many contentious issues, “we are encouraged to see that in the last (India-EU) summit at the end of March, both sides agreed to re-engage in this process to give it the necessary momentum”, Rosario said, referring to the 30 March India-EU summit in Brussels. India was represented by Prime Minister Narendra Modi and the EU side was represented by Donald Tusk, president of the European Council and Jean-Claude Juncker, president of the European Commission.But Rosario did not seem to have an answer when asked when the talks will get going again.According to analysts, the trade pact could serve as an “anchor” for bilateral relations, besides proving to European businesses that “India is open for businesses”.The March India-EU summit was the first in four years and followed the EU’s refusal last year to confirm the dates of a proposed visit by Modi amid a diplomatic row over the slow progress in India of the trial of two Italian marines accused of killing two Indian fishermen in 2012.Talks on the Bilateral Trade and Investment Agreement—the official title of the free trade pact—started in 2007 but progress has been tardy and marked by flip-flops. India cancelled a meeting with the EU chief trade negotiator in August last year in protest against an import ban on 700 of its generic drugs clinically tested by GVK Biosciences for alleged manipulation of clinical trials.“The GVK issue, it’s a decision for us that has nothing to do with the negotiations of a trade agreement, it never had a link,” Rosario said.Later, during a meeting between Modi and Tusk in the Turkish city of Antalya in November on the margins of a G-20 meet, both sides agreed to hold a stock taking meeting between the chief negotiators before resuming formal talks. The stock-taking talks, including a meeting between Indian commerce secretary Rita Teaotia and EU Trade Commissioner Cecilia Malmström in Brussels on 22 February, however, did not produce any results.The impression in New Delhi seems to be that with the EU involved in talks with the US on the Transatlantic Trade and Investment Partnership, it is not focused on trade talks with Asia’s third largest economy. Also occupying European mind space is the British referendum, to be held on 23 June, on whether the country should remain in the EU.“There was a long discussion on the trade agreement during the India-EU summit and we have conveyed to them (EU) that we are committed to the agreement,” said a person on the Indian side who is familiar with the developments.On India’s part, disputed issues in the trade talks include the so-called Mode 4, a provision of the 1995 General Agreement on Trade in Services, which seeks to facilitate the movement of professionals from one country to another.According to Shada Islam, director at the Policy Friends of Europe think tank based in Brussels, India-EU ties seemed to be a work in progress with India focused on consolidating ties with countries like the US.“The India-EU relationship is not as vibrant as the EU-China partnership,” she said, adding that the 30 March summit “seemed to be the beginning of a new understanding with misconceptions on their way out”.“At the moment, we (India and the EU) don’t have a strong anchor for our relations and the trade agreement could serve as that anchor,” she said.Total bilateral trade between India and the EU, which is India’s largest trading partner, was €78 billion in 2015, according to EU figures.The EU is one of the largest foreign direct investors in India with investments of €38.5 billion since 2000.
View from abroad: When it comes to Hungary, Europe should practise what it preaches (Originally published 09/05/2015 at dawn.com)
Believe it or not, there is more to the European Union than the recent elections in Britain and London’s erratic and volatile relationship with Brussels.The EU is also not just about the dire financial and economic straits in which Greece finds itself — and unrelenting speculation about whether or not Athens is ready to exit the troubled Eurozone.In addition to fears of a Brexit and Grexit, Berlin is mired in a new spying scandal which threatens to engulf German Chancellor Angela Merkel.And, of course, the EU is under attack over its less-than-impressive response to the humanitarian tragedy unfolding on its southern shores as hundreds of refugees and economic migrants drown even as they seek to enter “Fortress Europe”.The EU’s southern and eastern neighbourhoods are in turmoil. Relations with Russia remain tense and EU governments have no influence over events in the Middle East.These and other troubles facing the 28-nation bloc capture the media spotlight and lead to endless hand-wringing over the EU’s future.All of these troubles deserve attention. But, interestingly, neither the media nor EU policymakers appear to be paying serious attention to a country — Hungary — whose leaders appears intent on defying many of the key values — human rights, democracy and tolerance — that the EU holds so dear.It is an important paradox. The EU wields enormous power over countries which are seeking membership of the 28-nation club. But once a so-called “candidate country” joins the Union, Brussels loses much of its influence over the future direction of a “member state”.This is exactly what has happened with Hungary and some other “new” EU countries which joined the Union earlier this decade.Before it entered the EU club, Hungary had to meet very strict criteria on issues like democracy and adherence to the principles of a market economy. Human rights standards had to be adhered to. Every move made by the government was scrutinised and judged.No longer. Hungary is now accused of a host of sins — and while Brussels often chides and scolds, it has little — actually it has NO — power to change the course of events in the country.There is no doubt: Hungarian Prime Minister Viktor Orban is the bad boy of Europe. He cultivates close links with President Vladimir Putin at a time when the rest of the EU is seeking to distance itself from the mercurial Russian leader.Putin’s visit to Hungary earlier this year was widely seen as a defiance of the EU’s decision to keep cool diplomatic relations with Russia.More controversially, Orban has sent shock waves across the EU by insisting that the bloc should protect its borders against immigration by using military force because it doesn’t need new migrants.While other EU leaders in Brussels struggled to come up with a coherent plan to stem the tide of immigrants seeking shelter in Europe, Orban urged tougher measures.“Europe’s borders must be protected. We cannot be like a piece of cheese with holes in it so that they [immigrants] can be crossing in and out. Serious police and military steps must be taken and also steps that they remain at home,” he said.Going even further, Orban said the Hungarian government wanted to be able to detain all those who cross borders illegally, something that is only allowed in exceptional cases under EU law. It also wanted to have migrants work to cover the costs of their accommodation or detention in Hungary.In a questionnaire to be sent out to eight million citizens over 18 years of age, Hungarians will be asked to answer 12 questions on whether “the mismanagement of the immigration question by Brussels may have something to do with increased terrorism”.“The questions are leading and manipulative,” according to Dutch MEP Sophie In’ t Veld who said the whole questionnaire was “horrible”. Her colleague Cecilia Wikstrom, a Swedish liberal MEP, said it showed how Orban is distancing Hungary from Europe and “transforming Hungary into a mini-Russia”.There are suggestions that Orban, whose Fidesz party has seen a plunge in polls recently, is seeking to embrace issues championed by the far-right Jobbik party, the largest opposition force in Hungary.Hungary’s EU partners are equally vexed at the prime minister’s statements in favour of re-introducing the death penalty.Orban “should immediately make clear that this is not his intention. Would it be his intention, it would be a fight,” EU Commission President Jean-Claude Juncker has warned.Budapest has since then retracted Orban’s statements, saying it has no plans to restore the death penalty.Worryingly for Brussels, Orban has also staged an autocratic crackdown on the nation’s press, which the independent watchdog Freedom House now ranks as only “partly free”.While the EU has so far managed to keep Hungary in check, the country is a worrying example of how things can go very wrong in the heart of Europe and the European Union.EU officials and members of the European Parliament rant and rave about Hungary and Orban but the stark truth is that while the EU wields a huge stick before a country joins the club — demanding changes in government rules and regulations and overall conduct — its influence dims once a country becomes a member.So, while the talk in Brussels is understandably about Britain, Greece and Germany, it is time that EU leaders exerted some real pressure to bring Hungary in line with Europe’s standards of conduct.It’s about consistency, coherence in the EU and above all making sure that Europe practices what it preaches to the rest of the world.
Bandung and a changing world order
For proof that the world is a much-changed place, look no further than last week’s impressive Asia-Africa conference in Bandung, Indonesia, marking the 60th anniversary of the original Cold War era summit in the same city led by Indonesia’s then leader-Sukarno.The talk in Bandung six decades ago among representatives from twenty-nine Asian and African governments of Asian and African nations was of the role of the “Third World” in the Cold War, economic development, and decolonisation.The meeting’s final resolution laid the foundation for the nonaligned movement during the Cold War. The heady talk among leaders was on the potential for collaboration among Asian and African nations and their determination to reduce their reliance on Europe and North America.Fast forward to Bandung last week and replace references to the “Third World” with the more modern “emerging nations” and it’s clear that Asia and Africa have changed dramatically since 1955.The two regions – as well as Latin America – are simultaneously driving the transformation of the global landscape and thriving because of it.The mood may be morose in Washington and EU capitals – but Asia, Africa and Latin America are on a roll. Trade is booming – including between the three regions, investments are pouring in and an emerging middle class is changing social, political and economic lifestyles.Interestingly – and worth reflecting on – is the fact that much of the transformation is the result of China’s rise and its gradual but sustained emergence as an important regional and global actor.The West, especially the United States, is finding it difficult to adjust and accommodate the deep-seated paradigm shift in power taking place around it. That’s not difficult to understand given that the US as the current dominant global power has the most to lose from the shift of power to the East.But Europe also needs to come to terms with a changed world. Here in Brussels as the European Union prepares to hammer out a new European Security Strategy to replace the one written 12 years ago it needs to pay special attention to the myriad ways in which the world is becoming different, almost daily. And it needs to forge a new outlook on China and Asia.The world viewed from Europe is indeed violent, messy and dangerous. The EU faces a host of domestic problems – Greece, unemployment, and of course the deteriorating refugee crisis. Europe is surrounded as some say by a “ring of fire”: in the east by Russia and in the south, by a turbulent Arab world.But the EU should be wary of projecting its own morosity on other regions – and indeed of basing its assumptions of Asia’s future on Europe’s tragic, war-racked past.While Europe and its neighbours are in turmoil, the rest of the world is doing better than expected – and certainly better than 60 years ago.The economies of most of the African and Asian countries gathered in Bandung are booming. Steps are being taken to combat poverty, there were successful elections in Afghanistan and Indonesia – and changes are underway in Myanmar and Vietnam next year.Emerging countries are setting their own agenda, defining their interests, building partnerships and rallying together to forge a joint vision for the future.This time the talk is also of breaking the chains of colonialism – but of a different kind; today’s African and Asian governments want an end to the economic domination of the West and of Western insitutions.As the Bandung meeting pointed out last week, the focus is on establishing a new global order that is open to emerging economic powers and leaves the "obsolete ideas" of Bretton Woods institutions in the past.President Xi Jinping of China told the conference that “a new type of international relations” was needed to encourage cooperation between Asian and African nations.Indonesian President Joko “Jokowi” Widodo, the conference host, said those who still insisted that global economic problems could only be solved through the World Bank, International Monetary Fund and Asian Development Bank were clinging to a long-gone past.“There needs to be change,” he said. "It's imperative that we build a new international economic order that is open to new emerging economic powers.”In 1955, the 29 countries which met in Bandung accounted for less than a quarter of global economic output at that time; today they contribute to more than half of the world economy.Many of those countries, such as China, India and Indonesia, are now themselves at top tables like the Group of 20 and wield significant economic power.Indonesia’s Jokowi said the group was meeting again in a changed world but still needed to stand together against the domination of an unspecified “certain group of countries” to avoid unfairness and global imbalances.The creation of the China-backed Asian Infrastructure Investment Bank (AIIB) is one way in which emerging nations are challenging the Western-dominated economic stage. While the US has decided to stay out of the AIIB, many European countries have offered to be founding members of the new bank.Asia’s future will depend to a large extent on the economic future of China. And on relations between China and Japan.Tensions between Asia’s two biggest economies have flared in recent years due to feuds over wartime history as well as territorial rows and regional rivalry.Memories of Japan’s past military aggression run deep in China, and Beijing has repeatedly urged Japan to face up to history.In an encouraging move, Japanese Prime Minister Shinzo Abe and President Xi did meet in Bandung, prompting hopes of a cautious rapprochement between the two economic giants.Peace and prosperity in Asia hinge on cordial relations, even partnerships between the region’s leading powers. And who knows if China and Japan can sidestep their historical enmities, perhaps India and Pakistan could – one day – do the same?
View from Abroad: As Germany versus Greece, it’s about the people (Originally published 07/02/2015 at dawn.com)
The epic battle being fought between a tough-talking Germany which appears to want each and every European to “tighten his/her belt” and Greece’s new anti-austerity government is tearing the European Union apart.The confrontation reveals many fissures in the 28-nation bloc. For some, it’s a fight between David (Greece) and Goliath (Germany). In other words, Europe’s biggest and most powerful economy is shamefully bullying the weakest. But, as in the legend, many are betting that David will win.Others point to a confrontation between Protestant Germany which believes in under-spending, under-consuming and putting aside money for tough times and Orthodox Greece which has spent, spent, spent and is now hopelessly broke.German media rant against the lazy, good-for-nothing Greeks who are looking for more handouts. Greeks rage against a heartless Germany obsessed with austerity.The real fight, however, is not about religion, cultural prejudices, stereotypes, racist clichés and worse. It is about European priorities, values and what comes first: money or people? The battle is for the hearts — or the minds — of Europeans. For the moment, there are no winners.With their demands for a renegotiation of their country’s crippling debt burden and an end to austerity, the new Greek Prime Minister Alexis Tsipras and his Finance Minister Yanis Varoufakis are appealing to the hearts of the millions of Europeans — especially young Europeans — who have been devastated by the economic crisis.Growth may be picking up slowly but jobs are still scarce. Greece has undoubtedly been hit the hardest by the crisis. Germans say angrily that Greece was also the most profligate of the Eurozone nations. For the moment, Germany is refusing to consider debt relief for its southern partner.Across the bloc, the debate has pitted economists against each other, put the European Central Bank on a collision course with Athens and triggered an even greater rift between Berlin and Athens. EU member states are reluctant to take sides, wary of getting on the wrong side of Berlin and triggering panic in world financial markets.But Greece has sympathisers in France, Spain and Portugal, countries which have also been wriggling in Germany’s tight grip.During a much-publicised “charm offensive” last week, Greek Finance Minister Varoufakis sought to speak to the hearts of all Europeans when he urged Germany not to humiliate his country over its debts.Interestingly, Varoufakis’ sartorial style — he eschews the finance ministers’ uniform of white shirt and dark suit in favour of bright shirts and leather jackets — has been the subject of as much media comment as his stance on his country’s economic plight.The Greek finance chief has compared Greece’s situation with that of interwar Germany, telling German television: “I think of all the countries in Europe, the Germans understand best this simple message. If you humiliate a proud nation for too long and subject it to the worry of a debt deflation crisis, without light at the end of a tunnel then things come to the boil.”Differences between the two countries were in strong evidence at a tense press conference after a meeting in Berlin, when German Finance Minister Wolfgang Schäuble and Varoufakis “agreed to disagree” over the proposals of the Syriza-led anti-austerity government.Both men refrained from angry outbursts but if there is to be a compromise, it will take time to emerge.While economists in Berlin and Athens battle it out with figures and percentage points, the rest of Europe is mourning the demise of what is often viewed as one of the bloc’s most significant and valuable achievements: solidarity.Working together, looking after each other and taking care of the most disadvantaged were supposed to be the key values and the fundamental basis of the EU. Solidarity was supposed to make the EU go round. But the economic crisis has shown the limits of solidarity.At a recent conference in Brussels, a German academic complained with a mixture of anger and sadness that Berlin was so focused on numbers that it was forgetting the human dimension of the economic crisis. “They tell me this crisis is about money, not about people,” she said.It is also my experience. In meeting after meeting, policymakers, academics, business leaders discuss the pros and cons of austerity versus growth, myriad ways to stimulate the economy, tackle global competition and increase productivity.There is little mention of the tragic toll the crisis has taken on many Europeans, especially young people, or of the growing disconnect between Europe’s decision-makers and European citizens.While European finance ministers scramble to find a satisfactory compromise, Tsipras and Varoufakis have made their point: it’s about the people, stupid.
View from Abroad: Pakistan’s choice (Originally published 6/12/2014 at dawn.com)
As I prepare to travel to Pakistan — the first such visit in five years — I am filled with admiration, amazement and apprehension. They say the past is a different country. And Pakistan is certainly a very different country from the one I left all those years ago.Pakistan and I have both changed. I am obviously older (but not wiser) than the young, naive and rather demure girl who boarded the plane from Islamabad to Brussels with her parents and sister. At the time, I believed I would be away for a few months, may be a couple of years. Several decades later, Europe has become a core part of my identity and existence and Brussels is “home”, a city that has nourished and nurtured me through good times and bad.Pakistan’s transformation is more starkly radical. Sometimes I can hardly recognise my country of birth. There is much still to admire and love — and to yearn for on cold European winter evenings. Family and friends of course. The food and some of the music. The stories being told by old writers and new ones whose books I devour avidly. The artists whose pieces stir long-buried memories.But what I admire most is the resilience of the people. The indomitable spirit of the so-called common man, the “ordinary” people — or the “masses” that the Pakistani politicians refer to in derision — who keep the country humming and running against all odds.You see that unbeatable spirit everywhere, among the people displaced by floods and the deadly fighting between the army and the Taliban, after the tragic deaths of innocent civilians caused by drones, among the thousand Malalas still determined to go to school and the sick people waiting patiently for a doctor to see them in crowded hospitals.But that resilience is also about being optimistic about the future. Going to work every day in packed buses, facing harassment, electricity breakdowns, rampant inflation and corruption with stubbornness and stoicism. And to keep going on and on. I admire Pakistani business leaders and innovators who still invest and believe in the country. The young and the daring entrepreneurs. People who speak up for tolerance, resist the siren song of conformity and compromise.I have seen the same energy and resilience in many other parts of Asia and in Africa. But recently rarely in Europe. The Eurozone crisis has exhausted Europe and joblessness rates are much too high, especially for young people.But speak to young people in China, India and Indonesia and it is clear that they believe in a better future. Visit the countries and it is clear that people’s lives are getting better. Of course there is still inequality, poverty and hunger. But the governments in these countries are trying hard to tackle the multiple challenges they face. Are Pakistani politicians doing the same?So what about my amazement? Well, I suppose it’s about the patience of the people, the willingness to put up with mediocre and often corrupt politicians, war-mongering soldiers, inequality and unfairness and the rampant lack of the rule of law. Elections have not led to real democracy. All that aid money pouring in, has not led to sustainable growth and development.Reading the online version of the front page of Dawn fills me with wonder at how quickly Pakistan’s political landscape has turned into a dark, cruel, repetitive circus. The scowling, angry features of former cricketer Imran Khan, the crazy pronouncements of the Canadian preacher, the ever-chubbier and dishevelled, helpless look of the prime minister and the semi-lucid mutterings of the scion of the Bhutto family.And then there is the apprehension. Despite the disappointment and the disillusionment with a country which I once called home, I suppose there is still some lingering connection, a hope that Pakistan will survive the challenges of the 21st century, stand proud and tall and become an integral part of a rising Asia.It would be nice if Pakistan was in the headlines not because of the antics of the likes of Junaid Jamshed, anti-India rants by the foreign ministry, suicide bombings and hate-Malala crazies as well as the treatment being meted out to Asia Bibi but because the country was breaking new ground, turning a fresh page, opting for sanity rather than madness.After so many years and so many wonderful experiences in Europe and Asia — not to mention the lessons in honesty, sincerity and fearlessness that I learned from my father — I wonder if I will be able to stay silent when I encounter intolerance and religiosity and the blatant disregard for the rights of women, children and minorities that seems to have become part of the national discourse.Across Asia, there is hope and progress. Viewed from Brussels, it certainly looks like this is the Asian Century, a time when Asia is coming of age, growing and developing.Pakistan has a choice: it could join the Asian mainstream and give its people the life and future they deserve or it can opt to be part of a self-destructive Middle East mindset and stay on the periphery of a dynamic and vibrant Asia. I know what I would choose — but do they?