THE Eu-India The negotiations of the free trade agreement (ALE) are faced with several key obstacles; India protects its agricultural sector with high prices and subsidies, fearing that competition from the EU would harm local farmers. The EU, on the other hand, puts pressure for market access but faces resistance due to the interior sensitivities of India. India maintains high prices on goods such as cars, wines and dairy products, which the EU wishes to be reduced. India is looking for better access to its textiles and pharmaceuticals in the EU, but faces strict regulatory barriers.
India Wishes easier visa standards for its professionals in the EU, especially in IT and services. The EU is prudent, citing immigration problems and impacts on the job market. The EU demands stronger protection of patents, especially for pharmaceutical products, while India gives priority to affordable generics, creating tensions on DPI standards. EU’s push for environmental clauses, labor and human rights, including its carbon borders adjustment mechanism, comes up against India concerns about additional costs and sovereignty.
The EU seeks access to public procurement markets in India, but India restricts foreign participation to protect the national industries. India’s links with Russia And different opinions on global problems complicate confidence construction, the slowdown in progress. Negotiations, in progress since 2007, targets an agreement by the end of 2025, but these problems required a significant compromise. The two parties see strategic value – India as a counterweight to China for the EU, and the EU as a key market for India, but filling these shortcomings remains complex.
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THE EU and China Are the largest trade partners of goods, bilateral trade reaching 739 billion euros in 2023. However, their relationship is complex, marked by significant imbalances and tensions, unlike EU-India negotiations, which are faced with different structural challenges. The EU manages a persistent trade deficit with China, reaching 292 billion euros in 2023, against 396 billion euros in 2022. EU exports to China were 223.6 billion euros, while imports were 515.9 billion euros. This contrasts with the EU-Indian trade, where the deficits are smaller and negotiations focus more on the reductions in prices than these striking imbalances.
China represents 21% of EU imports, but only 8% of exports, highlighting the dependence on Chinese goods such as telecommunications equipment and electric machines. The EU is looking for reciprocity because the Chinese market remains closed in key sectors such as supply and services. European companies face regulatory obstacles, forced technology transfers and a low application of intellectual property. This reflects India’s protection position on agriculture but differs on a scale due to the domination of the global manufacturing of China.
Chinese pressure for self -sufficiency and import substitution limits EU opportunities, unlike India, where negotiations aim to open mutually markets. The EU imposed prices up to 35.3% on Chinese electric vehicles in 2024, citing unjust subsidies. China retaliated with tasks on EU and Brandy dairy products. Recent talks explore minimum pricing instead, showing a pragmatic dialogue absent in the EU-India agricultural talks.
China dominates supply chains, refining 90% of critical raw materials, creating an EU dependence. This contrasts with EU-India discussions, which focus less on technology and more on traditional sectors. The EU considers China as a partner, competitor and systemic rival since 2019, balancing cooperation with prudence. Tensions on Chinese links in Russia and human rights problems complicate trade, unlike EU-India talks, where geopolitics plays a lesser role.
American prices under Trump (up to 125% on Chinese products) push China to seek narrower EU links, potentially flooding European products. The EU is wary, contrary to its proactive Pushing of the Ale with India to counter the influence of China. The Chinese IED in the EU struck 185 billion euros in 2024, almost equal to EU investments in China. However, the complete EU-China Agreement on Investment (CAI) (CAI), since 2021, has reflected distrust, unlike the EU-India focusing on the construction of a new FTA framework.
Despite an increase in trade by 1.6% in 2024 (762 billion euros), EU exports to China dropped by 4.5%, signaling vulnerabilities. China’s resilience contrasts with the slower integration of India into world trade. EU tools – such as foreign grant regulations and anti -dumping measures – target China distortions, a clearer approach than the negotiated tariff reductions sought with India.
The EU-China trade overshadows the EU-India trade, with China as a systemic challenge because of its economic weight. India’s obstacles concern interior protections more than world domination. EU-China tensions focus on high technology and imbalances, while EU-India speaks to agriculture, labor mobility and sustainability standards. The EU uses defensive measures (prices, probes) against China, but is looking for a cooperative business with India, reflecting different strategic priorities.
The EU-China trade remains robust but tense by imbalances, subsidies and geopolitics. Recent discussions on electric vehicles and the diversion of trade suggest pragmatic stages, motivated by external pressures such as American prices. Unlike EU-India negotiations, which target long-term integration, EU-China dynamics depends on the management of rivalry while preserving economic ties. The two relationships underline the EU challenge to balance openness with strategic autonomy in a multipolar world.
