Modi-EU leaders’ summit will talk vaccine supply, FTA talks and climate change

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Prime Minister Narendra Modi's virtual meeting with the Heads of State or Governments of all the 27 European Union (EU) member states on Saturday, will hold special significance for India.

A broad spectrum of multilateral issues is set to be discussed during a very challenging period for the world.

"The EU+27 have met in this format only once before, with the US President in March this year," the Ministry of External Affairs (MEA) said on May 6.

Therefore, while the agenda is dominated by the ongoing global health crisis, on the table are long-term issues such as connectivity and global warming.

Senior officials say such a packed agenda to discuss current issues of overriding importance has been uncommon in recent times. "The agenda is broad and will cover global vaccine supply chains, including the proposed intellectual property rights waiver for vaccine makers, a transport connectivity partnership, a pledge to reduce plastics manufacturing, and a medicine partnership," a senior MEA official said.

Health Partnership

Sources say European leaders are keen to hear what Modi says on vaccine supply, but will not press India to ship out large batches of vaccines, given its domestic challenges. New Delhi, meanwhile, will be looking to hear what key leaders of the bloc, including Germany, have to say about India's proposal to temporarily waive off certain intellectual properties of vaccine manufacturers.

Earlier, criticized for placing huge orders for its own populations, which left vaccine manufacturers with precious little resources to supply other parts of the globe, the EU has increasingly stressed on its openness and willingness to help lower income nations.

European Commission President Ursula Von der Leyen on May 6 said while 200 million doses of vaccines had been delivered to Europeans so far, an equal number has been given to the rest of the world.

After repeated hurdles in the initial days, the EU is vaccinating its population exponentially, with a target of covering about 70 percent of the people by July. Both sides are expected to announce measures to boost global vaccination initiatives such as COVAX.

Trade talks

Media reports from Geneva and Brussels have admitted that the EU is finally willing to return to the discussion table on the proposed free trade agreement (FTA). Indian trade department officials also said they expect a rapprochement.

After being proposed in 2007, the Broad-based Trade and Investment Agreement (BTIA) has seen 16 formal rounds of talks till 2013. But they had hit a wall after India decided to terminate the existing bilateral investment treaties (BITs) with 23 European countries in 2016.

The EU had criticized the move while asking India to keep individual agreements in force until a new pact was signed.

In early 2020, before the global COVID-19 pandemic changed priorities, India had reached out to the EU to restart the stalled BTIA talks, signalling its willingness to slash tariffs on wines and automobiles.

New Delhi had been keen on signing the pact after it decided not to join the proposed Regional Comprehensive Economic Partnership (RCEP).

But EU trade policymakers had rebuffed the offer arguing that the pact could not be discussed until India agreed to equal level discussions on investment protection, a key concern for European companies in India.

Long term

However, a key way forward for the India-EU Strategic roadmap announced last year, will be with the inking of a connectivity agreement with focus on the Asia Pacific region.

Set to overhaul and strengthen transport and logistic linkages between India and the continent, it will also have specific components to ease trade in energy and a forward- looking decision on digital issues as well, sources hinted.

The EU is also set to ask for India to join a global treaty on plastic pollution. Aling with Rwanda and Peru, the EU is currently pushing to have a legally binding global pact on the cutdown of plastic manufacturing and pollution.

India will be participating in the meeting of the European Council as a special invitee of the President of the European Council, Charles Michel, the MEA said.

The meeting will be hosted by António Costa, the Prime Minister of Portugal, which currently holds the Presidency of the Council of the European Union.