The Indo-European Union (EU) strategic partnership is firmly keeping the focus on evolving a strong multi-dimensional institutional framework for trade and economic linkages. The joint statement adopted at the just-concluded 8th Indo-EU summit has come as a clear reiteration of this strategic focus. It is evident that the member countries of the EU are keen to avail the EU collective institutional framework to secure for themselves a favourable trade and investment climate not just with India but with the rest of the world. While the nature of the framework that emerges would depend as much on Delhi’s perceptions about potential advantages from such institutional arrangements, there is no doubt that the Indian leadership too is keen to actively take part in this process.

A comprehensive Indo-EU bilateral trading arrangement on the lines of the proposed free trade agreement that India is currently negotiating with the Association of Southeast Asian Nations (ASEAN) may be an eventual goal. But the two sides are already negotiating a trade and investment agreement. This agreement is part of the agenda drawn up for the period 2007-2010. Such an agreement will be a forerunner for a free trade arrangement. CEOs from the two sides are already advising officialdoms on the issues of trade and investment through their Round Table mechanism. Besides, there is also a proposal from the EU to set up a European Business and Technology Centre in India with the objective of strengthening co-operation in such key areas as energy, environment, clean development and climate change. At the summit last Friday the EU side also reiterated its continuing determination to enlist India’s support for expeditious conclusion of the negotiations on Doha Development Agenda.

Of course, individual EU countries such as Germany, France and the United Kingdom which already have strong economic ties with India are continuing their engagement at the bilateral level as well. In fact, the bilateral route continues to be vital for both India and these individual EU nations. All important political and strategic issues are also dealt with at bilateral level between India and individual EU countries. However, the latest summit has demonstrated that India and the EU are well on course to identifying common grounds and developing common approaches to deal with vital foreign policy issues. The EU’s recent entry to the South Asian Association for Regional Cooperation (SAARC) as an observer may strengthen Delhi’s initiative to win endorsement of the EU for evolution of a stable and democratic and peaceful neighbourhood for India.