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Abstract
Relations between India and the European Union (EU) have evolved over a long
period. Beginning in the early 1960s, with diplomatic relations being established
between India and the European Economic Community (EEC), it has expanded
and subsequently been transformed because both India and the EU (since 1992)
have assumed a growing significance in post-Cold War international politics.
However, this partnership has not been able to achieve its potential partly be-
cause of the low political visibility of the EU and strong bilateral relations between
India and major European powers. The India–EU relationship in the context of
the strategic partnership launched in 2004 has witnessed a dramatic expansion
of engagement from the economic to the political and security realms, although
the strategic partnership does not mean absence of differences and difficulties.
There is, however, a perception that India’s closeness to the US has impacted the
development of partnerships with both the EU and major individual countries.
Keywords
India–European Union relations, European security strategy, strategic partnership,
multi-lateralism, normative values
Introduction
India and the European Economic Community1 (EEC) established political rela-
tions in 1963 and this constituted another set of relations to the existing bilateral
relationships that India had with individual countries of the EEC, in particular the
Ummu Salma Bava is Professor, Centre for European Studies, Jawaharlal Nehru
University, New Delhi, and Associate Fellow, Asia Society, New York.
E-mail: usbava@gmail.com
The author wishes to thank the anonymous referees for their helpful suggestions.
West European countries. India was also one of the first developing countries to
engage with this new entity that represented an organized attempt at regional inte-
gration. The major elements of India–EEC relations from the outset focused on
trade and commerce. Apart from this, India also received the highest amount of
development aid among all Asian and Latin American countries from the European
Community (EC).
Incremental steps that, over the years, have elevated the relationship from
commercial and trade relations to political cooperation marked India’s relations
with the EC. In 1971, the EEC introduced the general tariff preferences for ninety-
one developing countries, including India, under the Generalized System of
Preferences (GSP) scheme. This was followed by India and the EEC signing the
Commercial Cooperation Agreement in 1973. In 1981, India and the EEC signed
a five-year Commercial and Economic Cooperation Agreement. Further visibility
was gained by the EEC in 1983 when the EC Delegation was established at
New Delhi.
The EU for a long time was India’s largest economic partner. In 1984, Indian
imports from the EC represented 23 per cent of its total imports, as compared to
10 per cent from the US, 7 per cent from Japan and 6 per cent from the former
Soviet Union. Indian exports also were marked by the same trend with 20 per cent
being accounted for by the EC, 24 per cent by the US, 10 per cent by Japan and
12 per cent by the former Soviet Union (European Commission 1986: 7). Although
the 1980s witnessed enhanced trade and commercial relations, it was the end of
the Cold War that provided the impetus to moving India–EC relations forward.
Relations with the EC were in tandem with India’s relations with some of the
key countries of Western Europe—United Kingdom, France and West Germany.
With the UK in particular, India has had a multi-faceted bilateral relationship that
evolved into a new political engagement after Indian independence in 1947.
France and West Germany, also called the ‘motors of European Integration’,
engaged India differently and the political outcome was consequently more dis-
tinctive. Indo-French relations were far more formal and lacked much political
warmth until the end of the Cold War (Gupta 2009). Despite being the third largest
weapons supplier to India in this period, the political equation was restrained by
the ambivalent French attitude towards Pakistan. West Germany, on the other
hand, has a more intense relationship with India.
Indo-German relations were even more influenced by the Cold War. While India
adopted non-alignment and West Germany got integrated into the NATO; their
ideological differences limited the relationship to the areas of trade, development
assistance and education. A noted West German scholar described the German
political engagement with India as a policy of ‘benign neglect’ (Rothermund
1995: 474). In other words, the political aspect of the relationship could not de-
velop beyond these issues until 1990, when German unification took place lead-
ing to the end of the Cold War.
These broad political and economic developments at the global level provided
both India and the EU with new opportunities for engagement. The first official
New Asia Strategy of the EU was adopted in 1994 and subsequently revised in
2001. As the document states, it was a first attempt to take an integrated and bal-
anced view of the relations between the EU and its Asian partners. The changing
economic balance of power was the major reason for the EU to focus its attention
on Asia as a region and accord it high priority, although it had bilateral relations
with many countries of Asia. The 1994 Asia Strategy was aimed primarily at
Southeast Asia and it resulted in the launch of the Asia-Europe Meeting (ASEM)
in 1996. The economic rise of East Asia brought it far greater political visibility
as well. ‘The increasing strategic value of East Asia provided a timely and wel-
come additional impetus to intensified EU approach towards East Asia’ (Park and
Heungchong 2008: 73).
As India had just launched its economic liberalization at this time, there was a
time lag before the EU extended recognition to India as a critical partner. What is
significant is that the EU’s focus on Southeast Asia coincided with India’s launch
of its own Look East policy in 1991. An economically vibrant and emerging
Southeast Asia attracted both the EU’s and India’s attention. In addition, there
were many factors driving both to engage the region, but what distinctly stood out
was the rapid economic growth of Southeast Asia, the rise of the Asian tigers and
growing influence of China, which was transforming the region. It was not until a
decade later, that India came to be regarded by the EU as having the potential to
be engaged as a different actor.
in 2002 to €12.2 billion in 2006 (European Commission 2011). In the recent years,
the global financial crisis led to decline in trade, which has recovered since
2010.
The step-by-step upgrading of the India–EU political and economic relation-
ship to the summit level in June 2000 in Lisbon could be viewed as a signal by the
EU of its intentions to enhance its political and economic relations with India. But
the enhancing of this summit-level relationship to a strategic partnership in 2004
was driven largely by other factors that influenced the EU to define its own strate-
gic concept. One can read the EU’s intentions about the region in its Asia strategy.
The EU had set for itself the task to ‘follow a forward-looking policy of engage-
ment with Asia, both in the region and globally’ (European Commission 2001).
The strategy identified six objectives: contributing to peace and security, promot-
ing mutual trade and investment flows, protecting human rights, building global
partnerships and enhancing the awareness of Europe in Asia and vice versa.
In 2001, the EC set out a strategy for cooperation with Asia entitled ‘Europe
and Asia: A Strategic Framework for Enhanced Partnership’. A first review of the
Commission’s strategic framework for action in Asia took place in May 2007.
Subsequently, the Commission set up a Regional Programming for Asia Strategy
Document 2007–2013 and identified three priority areas: support for regional
integration, policy and know-how based cooperation in environment, energy and
climate change and support for uprooted people.
Although the 2001 document laid the blueprint for a more enhanced engage-
ment with Asia, other factors contributed to this policy shift within the EU. A
major trigger for the shift in the EU’s engagement with different countries was the
September 2001 attacks on the US. There is no denying that 9/11 proved to be
another dividing line in international politics and in particular for the transatlantic
relationship. Although the US-initiated war on terror (named Operation Enduring
Freedom) in Afghanistan found support in Europe, its subsequent invasion of
Iraq in 2003 left the EU’s Common Foreign and Security Policy (CFSP) totally in
disarray. The EU could not speak in one voice and lacked a cohesive approach to
the problem. The special relationship of the United Kingdom with the US was
soon evident with the UK ardently supporting the pre-emptive war America
planned against Iraq. However, Germany and France were strongly opposed to it
and did not support such an action. Interestingly, some of the countries of Central
and Eastern Europe, which had recently joined NATO, such as Poland, partici-
pated in the war. This drew the comment from the then US Secretary of Defence,
Donald Rumsfeld that France and Germany was ‘old Europe’. This eagerness of
Poland to engage was more starkly offset by the French and German refusal to
support such an action that resulted in the NATO ambassadors turning down the
American request for advance military planning. The EU’s response at best could
be described as incoherent—while France and Germany sought legitimacy within
a UN mandate, Italy and Spain favoured a US strike, and Britain stood resolutely
in support of the US. The much-proclaimed CFSP launched a decade earlier in
1992 remained shattered.
It was this that led to soul-searching within the EU on its CFSP and the EU’s
High Representative for Common Foreign and Security Policy, Javier Solana,
presented a strategy paper in June 2003 that served as the basis for a new European
Security Strategy (ESS) to be adopted by the European Council in December that
year. Titled ‘A Secure Europe in a Better World’, the ESS was indeed a remark-
able document put out by the EU as roadmap for collective action that identified
five security threats: terrorism, proliferation of weapons of mass destruction, re-
gional conflicts, state failure and organized crime. It also emphasized that the EU
would have to think globally but act locally. Although emphasizing the building
of security in its neighbourhood, the EU, for the first time, also enunciated the
need for an international order that was based on ‘effective multilateralism’.
In order to realize these security objectives, the EU proposed an approach that
envisaged developing key partnerships, working, in particular, with the US that
continues to anchor transatlantic relations with Russia, Japan, China, Canada and
India (Council of the European Union 2003). It is this that propelled the EU to
engage India in a strategic partnership since 2004.
In 2006, at the Helsinki Summit, both sides endorsed a proposal to negotiate a free
trade agreement (FTA), negotiations for which are still under way. India’s grow-
ing economic performance has enabled it to take a tough stand on trade-related
matters.
The JAP was reviewed at the 2008 summit held in Marseille, France, which
focused on promoting four areas: peace and comprehensive security, sustainable
development, research and technology, and people-to-people and cultural ex-
changes. The JAP is an ambitious agenda and emphasizes a strong political, eco-
nomic and civil society engagement. It ‘offers a roadmap for future bilateral
relations’ (Wagner 2008: 103).
In terms of the objectives laid out in the JAP, political cooperation with respect
to security and defence between India and the EU has grown extensively in the
aftermath of the Mumbai attacks in 2008. There has been a steady increase in the
dialogue on terrorism at all levels. The 2005 India–EU Joint Action Plan had
identified counter-terrorism as an area of cooperation. This was reiterated in the
2009 EU–India Summit Declaration. However, there is a need to revitalize and
restructure the cooperation which has so far been bilateral rather than multilateral.
This point was also reiterated by the EU–India Forum on Effective Multilateralism
in October 2009 in New Delhi. It said in its recommendations that ‘there is a need
to establish an India-EU Joint Working Group on counter terrorism to develop a
common understanding of issues related to terrorism and response mechanisms’
(ICWA 2009).
On the economic front, since 2007, India and the EU have been negotiating a
FTA, which covers trade in goods and services, investments, intellectual property
rights and government procurement. Supporters on both sides speak of the over-
whelming positive impact it will have on trade between India and the EU.
The delay in concluding the FTA points to problems in some key areas. One
area is the liberalization of trade and investment in banking services. The EU is
seeking a larger market access for its banks; in particular, this is being pursued
aggressively by the UK and Germany. Undoubtedly, the profitability of the Indian
economy attracts foreign banks to India. Most foreign banks in India are reporting
high profits. As on March 2010, there were nine EU-based banks operating in
India and they are keen to concentrate on niche marketing in the metros rather
than on social and developmental banking in rural areas. India will need to tread
with caution in the light of the last financial crisis that also enveloped European
banks. In the absence of adequate regulations, the EU’s desire for an unrestricted
investment environment in India could cause major repercussions for the econ-
omy (Singh 2011).
Another key area of discord between India and the EU pertains to intellectual
property rights in the field of medicine. The EU would like to include data exclu-
sivity, which would impact the production of generic drugs in India. In fact, the
EU is supported by leading pharmaceutical companies in Europe, which would
like this provision to be incorporated in the FTA. Such generic drugs are exported
to Africa and other poor regions to combat endemic diseases such as HIV/AIDS,
tuberculosis and malaria. Given that generic drugs are cheaper than patented
drugs, these have played an important role in fight against these diseases. Interest-
ingly, there is protest within the EU civil society itself against this issue. The
CEO, a watchdog group on the European industries’ influence on the EU’s invest-
ment and trade relations with the developing world, accused the EC ‘of discrimi-
nating in favour of corporate lobby groups and of violating the EU’s transparency
rules’ (Godoy 2011).
Emphasis on common interests and common values notwithstanding, the need
to identify deliverable cooperation has become more important. In comparison
with the EU, India’s relations with the US witnessed a major political shift: the US
has recognized the valid claims of India’s national interest and has acted to en-
hance and strengthen India’s military, economic and technological capabilities,
while endorsing ‘common values’ (Bava 2008: 108). India–US relations have
been a game changer—bringing deliverables to the table that no other country has
been able to. It has had the impact of single-handedly transforming not only bilat-
eral ties but has had significant multilateral consequences as well. The civil
nuclear agreement between the two countries has enabled global civil nuclear
commerce and trade.
Although some of India’s interests converge with those of the EU, the differ-
ence in global aspirations would be a hindrance to a strategic convergence between
the two sides. While India is the only non-Western democracy in South Asia and
ideationally the closest to the Western democratic normative structure, its demo-
cratic practice did not get the recognition of the West for a long time.
While India and the EU have shared values based on democracy and human
rights, there had been a tendency in the past for the EU to lecture India on its
human rights practice. In stark contrast, the EU has actively engaged China
although it is not a democracy. This reiterates the fact that despite the emphasis on
normative values, the EU is driven by realistic considerations of trade (Bava 2008:
109). Although the EU is an undisputed global economic actor, it does not yet
have commensurate political or military strength. Its inability to articulate a com-
mon foreign policy position, once again evidenced by the deep divisions over the
engagement in the wake of the unrest in Libya and the strong bilateral positions
global level require more interaction and engagement. There is growing interest
in Britain, France and Germany to enhance their relations with India and benefit
from its economic growth. Transforming the relationship indicates the recognition
of India as a significant actor in global politics. Making India a strategic partner is
something one finds in common across the three countries.
There is, however, a perception among European analysts that India’s close-
ness to the US has impacted the development of such partnerships with the UK,
France, Germany and the EU. In part, this feeling is strengthened by the fact that
none of these countries can individually or together facilitate a shift in the rules of
the global order the way America can—the civil nuclear deal is a notable example
in this context.
Conclusion
Given the difference in the capability of states at the normative and material level,
there is inherent asymmetry in strategic partnerships, which often signify that
relationships are about power and interdependence (Grevi 2008: 145). The decla-
ration of strategic partnership does not indicate the absence of differences between
the concerned parties. This point is demonstrated amply in the case of India and
the EU as well. Recognition of India’s potential as a leading global actor by the
West has been late. ‘As India’s concerns about certain global challenges get shared
with other countries, it also draws India into a larger orbit of collective action’
(Bava 2010: 120).
The EU suffers at two levels. First, ‘it suffers from a deficit of recognition as a
political actor enjoying the full array of traditional attributes of power’ (de
Vasconcelos 2008: 17). Second, the lack of political consensus within the EU on
foreign policy issues prevents New Delhi from considering Brussels as an import-
ant political actor. Despite a considerable ideational convergence between India
and the EU, it does not automatically translate into cooperation. Things in the past
happened more by chance and less by intent. Undoubtedly, there has been a shift
in the focus of relations, by changing the political equation and taking it beyond
rhetoric. India’s foreign policy today is a pragmatic blend of security and eco-
nomic imperatives. ‘As the relative capabilities of India have grown, the assess-
ment of other countries about India has also slowly shifted’ (Bava 2010: 125).
In the global context, as Joseph Nye has indicated, there are two visible simul-
taneous trends viz. power in transition and the diffusion of power (Nye 2011). In
this context, strategic partnerships stand between interdependence and power pol-
itics (Grevi 2008: 145). The significant question is whether ideational proximity
can be converted into interest convergence. In effect, the challenge for the India–
EU strategic partnership is to balance norms and realism (Bava 2008: 113). As the
EU tries to shape a universal concept of multilateralism and effectively tries to
multi-lateralize the multi-polarity, it seeks to develop partnerships with leading
and emerging global actors so that it can play a defining role alongside.
Note
1. The European Economic Community is also called or referred to as the European Com-
munity (EC) and since the adoption of the Treaty of Maastricht in 1992, it is called the
European Union (EU). These different nomenclatures appear in the article in pertinence
to the specific period or year under reference.
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