India, UK, and EU
Two recent interactions of External Affairs Minister (EAM) S Jaishankar with foreign interlocutors merit special attention. The first was with British Foreign Secretary David Lamy in Delhi on June 7 and the second, a few days later in Brussels with the leaders of the European Union. With the world in a churn, the UK, India and the EU are looking at their foreign policies’ options, especially in the political and economic domain. Part of the transformations underway are the natural consequence of social, economic, demographic and political changes that take place in all countries over time.
An added dimension to these evolutions has been added by the policies and positions of US President Donald Trump. This holder of the most important political office in the world is looking narrowly at US interests and acting in unpredictable ways. He has disrupted the world order by not showing any interest in reconciling US interests with those of the rest of the world. This is greatly adding to the difficulties of our times because it is also preventing humanity’s existential crises to be addressed collectively and constructively. Consequently, all countries, both individually and in groups, are trying to find new ways of protecting their interests. Their interactions have therefore increased and are directed towards finding ways of cooperation which they did not seek earlier.
This applies to the European Union and the UK in a big way. The latter is still in a process of working out its new relationships though it left the EU more than five years ago, in February 2020. For the former, the certainties provided by the Atlantic Alliance forged after the Second World War are eroding. Trump’s approach towards the EU and NATO is transactional and also disdainful. This was witnessed during Trump 1.0. After he lost the Presidency in the 2020 election, Europe thought that the sinews of the Alliance would regain firmness because Joe Biden followed traditional approaches. The return of Trump, though, has signaled a more uncaring US approach towards Europe. This is naturally leading EU leaders to look to ways of how to protect their interests as a de-coupling with the US in some areas may become inevitable. It is here that both the UK and EU are looking at India. Their primary areas of interest are economic, commercial and demographic but also extends marginally into the security domain.
In his opening statement at the beginning of his meeting with British Foreign Secretary David Lamy, EAM mentioned that the India-UK “comprehensive strategic partnership… has strengthened across all sectors in recent times”. India and the UK recently signed a Free Trade Agreement (FTA). With the virtual collapse of global trading arrangements as specified in the World Trade Organisation’s charter almost all countries and groups of countries are going in for FTAs. Trump’s actions of tariffs has made a deep impact on the world and speeded up the FTAs processes. He is not bothered that havoc it is wreaking on international trade by making it far more complex. But countries have no way other than going for FTAs. They will naturally be more advantageous for developed countries.
On the India-UK FTA Jaishankar noted “ the recent conclusion of the India-UK FTA and the Double Contribution Convention is truly a milestone which will not only propel our two way trade and investment but will have also have a positive effect on other strategic aspects of our bilateral ties, it would also contribute to the strengthening of supply and value chains”. Jaishankar also referred to the bilateral decision to cooperate in the technology area in these words “Technology Security Initiative (TSI) which will enable deeper collaboration in strategic technology sectors of AI, Semiconductors, Telecom, Quantum, HealthTech/ Bio-Tech, Critical Minerals and Advanced Materials”. The UK has strengths in hi-tech areas but it remains to be seen how much it would be willing to really share with India. This is particularly in the area of frontier technologies because no country parts with them.
The fact that Jaishankar met the entire EU leadership demonstrates that it wants to develop closer bonds with India. This is also in India’s economic and technological interests. At a press briefing where Jaishankar was joined by the EU High Representative Kaja Kallas who is in-charge of EU foreign relations, he noted that global changes should lead to intensified India-EU ties. He said “my visit to Brussels is taking place three months after that of the EU College of Commissioners to India. Even at that time, it was apparent that the world order was in the midst of a profound change. These trends have intensified in many ways. We have, without doubt, entered an era of multi-polarity and strategic autonomy. As two important poles of that emerging reality, there is a powerful case for India and European Union to forge deeper ties”.
While the EU will look towards India, its internal complexities and contradictions, lead to difficulties in dealing with it. Hence, while ultimately India-EU FTA will be reached its process will be more difficult than that India experienced with the UK. Besides, EU also wishes to develop closer trade and investment ties with China than that which exist presently. This will add to the complexities. Certainly, India should not overly look for cooperation with the EU in the security and defense areas. Naturally this does not apply to its individual members such as France with which India has a robust defence relationship.
