Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Trade tensions simmer ahead of EU-India summit

Trade tensions simmer ahead of EU-India summit

The inaugural EU-India Trade and Technology Council Summit will have to overcome thorny questions between two of the world’s largest democracies.

When European Commission officials and senior Indian ministers meet on Tuesday for their first-ever trade and technology summit, both sides will be eager to show how two of the world's largest democracies are working hand-in-glove on everything from artificial intelligence to climate-saving technologies.

Yet under the surface, ongoing tension — particularly related to tricky trade disputes like an upcoming European Union levy on foreign businesses selling their carbon-intensive wares within the 27-country bloc — will overshadow what Brussels and New Delhi want to frame as a meeting of like-minded partners.

The EU-India Trade and Technology Council brings together some of India's most high-profile politicians, including Subrahmanyam Jaishankar, the country’s external affairs minister, and Piyush Goyal, its trade minister, with Commission counterparts like vice presidents Margrethe Vestager and Valdis Dombrovskis.

"The European Union and India are committed to deepening their partnership and leveraging their respective strengths to accelerate the development and deployment of cutting-edge digital technologies that will benefit both societies and promote global progress," according to a draft of the upcoming summit's communiqué that was obtained by POLITICO.

Yet conversations with Commission and Indian officials, all of whom spoke to POLITICO on the condition of anonymity to discuss each side's internal thinking, reveal likely difficulties in a relationship mired in tense trading negotiations and differences in how to approach tech challenging like global telecommunication standards and how far governments should go in regulating AI and data.

A lot of that tension relates to the EU's upcoming Carbon Border Adjustment Mechanism, a border tax that comes into force in 2026 and will see importers, including those from India, having to pay a levy equivalent to the carbon priced paid by their European rivals that are part of the bloc's carbon emissions trading scheme.

For New Delhi, those additional costs constitute unfair trading practices, particularly for a developing country whose 1.4 billion people are not as wealthy as the EU's 450 million inhabitants. European diplomats, who also spoke on the condition of anonymity, pushed back at those claims, adding that changing the carbon border tax is a red line for Brussels and that Commission officials will explain to their Indian counterparts on Tuesday that the levy is here to stay.

Another trade irritant is how to deal with sustainability requirements the EU wants India to sign up to. These demands are being discussed in separate free trade negotiations between Brussels and New Delhi, but risk overshadowing part of the discussion on climate emissions at the Trade and Tech Council. The trade negotiations are still in a relatively early phase, although the last round "allowed for a more dynamic approach between both sides," a Commission spokesperson said.


Cleantech, standards and 'GovTech'


Still, the upcoming EU-India summit won't all be about trade bickering.

Both sides will also outline concerted efforts to work on global artificial intelligence standards, coordinate upcoming investments in their respective semiconductor industries and share expertise on clean technologies like those associated with the waste management and electric car industries, according to the draft communiqué and discussions with two EU officials and an Indian policymaker.

For Brussels, the goal is to steer New Delhi toward a growing Western consensus to create global digital and technology standards on everything from next-generation telecoms equipment to how to develop so-called quantum computing technologies. That would then help the likes of the EU and India to present a united front against China's own separate efforts to push its own view on how these international standards should develop.

So far, India has avoided picking a side on many of these issues, although it has its own geopolitical and economic tensions with China.

For New Delhi, officials are expected to champion the so-called "India Stack," or government-backed open digital platforms that allow hundreds of millions of locals to access government digital services and private online products, all through a few swipes of their smartphones.

The country's officials and industry executives view these platforms as a viable alternative to those offered by the likes of Google and Meta, and they lie at the heart of how the world's most populous country has positioned itself as a global digital player.

While many of these platforms are not owned by India, the country's government is trying to export these services — known as 'GovTech' — to others across the Global South, something that Brussels is eager to support, as well as offer its own technical expertise to ensure such an expansion upholds the toughest cybersecurity standards.

"The Indian Stack has scaled massively," said Divij Joshi, a researcher from University College London who specializes in India's digital platforms and governance. "India wants to promote that to the wider world."

Newsletter

Related Articles

0:00
0:00
Close
Elon Musk's AfD Endorsement Ignites Controversy from neo-Nazis who accuse the AfD of being what they themselves are
Chinese startup AGIBOT has started large-scale manufacturing of versatile humanoid robots.
EU Orders Apple to Open Up: A Bold Move Against Corporate Monopolies
Trump Recognizes Some Advancement in Ceasefire Initiatives for Ukraine Conflict
Tragic Loss in the Montserrat Mountains: Mango Founder Isak Andic Passes Away in Hiking Accident
Hungary's Balancing Act: Boosting Influence While Managing Economic Stability and Political Controversies
Failing the Test of Leadership: Netanyahu's Security Missteps
Pope Francis' Call for Compassion: Balancing Humanitarian Needs with Socio-Economic Realities
Pozitív Fordulatok és Új Lehetőségek: Oktatás, Gasztronómia és Sport Magyarországon
Magyarország szerepe az uniós szankciók kérdésében: Az energetikai stabilitás és az EU egységének egyensúlya
Romanian Authorities Thwart Armed Mercenary Plot, Drawing Parallels to U.S. Capitol Riot
Strategic Explosions: The Volatile Intersection of Guerrilla Tactics and Geopolitics in Ukraine
Austria's Dilemma: Repatriation of Syrian Refugees Amidst Fragile Peace
The Rising Tide of Aridity: Unmasking a Global Threat
Polarization: The Word That Unites a Divided Era
The TikTok Conundrum: A Battle for Free Speech and Innovation
A Test of Balance: Self-Defense and Judicial Equity in Germany
The Compass of Time: Unraveling the 2024 Person of the Year
Swift's Epoch: Revolutionizing Concert History with the Eras Tour
Storm Darragh Ravages the UK: A Pre-Christmas Tempest of Destruction
Enduring Peace or Strategic Uncertainty: Zelensky's Bold Plea Amidst Ukraine's Woes
Notre-Dame Rises Again: A Symbol of Resilience Amidst Turbulent Times
UAE Invests in Quantum Leap: A Bold Move Towards a Trillion-Dollar Future
Dutch Parliament's Controversial Motion Ignites Nationwide Protests
Integration or Intrusion? The Dutch Debate Over Migration Data
Bananas and Cocaine: The Unseen Paths of a Global Epidemic
The Surveillance Mirage: When Millions of Cameras Fail to Deliver Justice
Navigating the Digital Storm: Taylor Swift's Diplomatic Dance in Celebrity Showdowns
Justice Denied: Outrage in Germany as Legal System Fails Rape Victim
Storm Darragh's Menace: UK Prepares with Rare Emergency Alert
Guardians of Safety: Balancing Security and Freedom in Modern Europe
Germany Averts Christmas Market Terror Attack Amid European Political Turmoil
The European Energy Conundrum: Navigating Dependency and Independence
France at a Crossroads: Navigating Political Tumult and Economic Divergence
Britain Leads Charge in AI Safety Amid Global Challenges
A Conflict Beyond Borders: Navigating the Complexities of Israel and Gaza
Georgia's EU Saga: Aspirations, Challenges, and a Nation Divided
Macron's Gamble: Navigating France's Political Tempest
Macron Faces Political Upheaval Amidst France's Government Collapse
Addressing the Human Toll: Europe's Struggle Against Human Trafficking
Georgia's Democratic Challenge: Balancing Between Europe and Sovereignty
Major Events Unfold Worldwide: From New York Tragedy to Californian Quake Relief
A Name’s Ascent: Muhammad Tops Baby Name Charts in England and Wales
Nepal Embraces China's Belt and Road Initiative: A New Geopolitical Battleground?
Georgia's Political Turmoil: A Nation Divided Amid Opposition Crackdowns
Bitcoin's Historic Leap: A New Era or Just Another Bubble?
Nissan’s Challenge: Preserving a Legacy in the Age of Electric Vehicles
South Korea's Democracy Tested: President Yoon’s Martial Law Reversal Sparks Political Reckoning
China Restricts Export of Key Minerals to the US Amid Trade Tensions
Seoul in Crisis: Yoon Suk Yeol's Martial Law Blunder Triggers Political Upheaval
×