About the negotiations on the Free Trade Agreement (FTA) and the Investment Protection Agreement (IPA) between the EU and India
In 2022, the European Union (EU) and the Republic of India formally relaunched EU-India negotiations on a balanced, ambitious, comprehensive and mutually beneficial Free Trade Agreement (FTA) and launched separate negotiations on an Investment Protection Agreement (IPA). Initial negotiations between the EU and India for a Free Trade Agreement were launched in 2007 but were suspended in 2013.
In line with the statements released by the European Commission, the overall objective of the current negotiations is "to maximise the considerable trade and investment potential between the EU and India". India and the EU are already important trading partners. The EU is India's third largest trading partner, accounting for almost 11% of Indian trade in 2021. India is the EU's 10th most important trading partner, accounting for over 2% of EU trade in 2021. Liberalisation of trade and investment between the EU and India therefore represents an opportunity for the economic growth and the creation of jobs. Moreover, like all EU FTAs, this future agreement is expected to include ambitious and enforceable provisions on trade and sustainable development and to promote high environmental and labour standards in the EU and India.
About this Trade and Sustainability Impact Assessment
Trade and Sustainability Impact Assessment is a robust analysis of the potential impact that the Free Trade Agreement and Investment Protection Agreement negotiated between the European Union and the Republic of India could have on the economy, social life, environment and the enjoyment of human rights in India or the EU (including the EU's outermost regions). The assessment relies on economic modelling, literature review, statistical data analysis and continuous and wide-ranging stakeholder consultations.
Related to the impact areas, the analysis consists of four sustainability pillars: economic, social, environmental and the one related to human rights. Additionally, through case studies, the SIA provides an in-depth analysis on specific issues.
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