Abstract
The introduction of the “strategic partnership” between India and the EU in 2004 was an attempt to gradually deepen and institutionalize diplomatic relations and cooperation between the two entities within a number of areas such as multilateralism, security and human rights, enhancement of commercial and economic exchanges, sustainable development, climate change and poverty, and promotion of interactions at the civil society level. A joint action plan was later signed, but the relationship has not yet evolved into a strategic level between two equal partners. Seen from both sides, there are inadequacies and inconsistencies in the way the partnership is being conducted. There are serious complaints especially from India’s perspective about the dialogue itself and a lack of deep and serious commitment to move beyond the obvious and in some cases what is described a patronizing tone from EU delegations. This paper gives an overview of recent developments in the relationship with an emphasis on the period since the beginning of the European sovereign debt crisis and the simultaneous global shift away from geo-economics towards geo-politics. It utilizes a critical international political perspective which gives a coherent understanding of the interaction between what looks like a “normal” trade and investment relationship but what in reality appears as mercantilism mixed up with history, culture and politics. Adding to these difficulties are a number of domestic constraints which complicate the relationship.
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Notes
The poverty line is highly disputed in India and a politically sensitive question. According to the latest official estimates done by the Rangarajan committee submitted to the new BJP government in 2014, approximately 363 million people are living below the poverty level in India (Lamont FT, Sept. 2011; Times of India 7 July 2014).
For more on the theoretical framework about the interaction of geo-politics and geo-economics in a critical international political economy perspective, see Schmidt (2014a) and some similar empirical arguments and conclusions made in this paper but in a slightly different perspective focusing on the increasingly coherent and influential group of emerging economies consisting of Brazil, Russia, India, China and South Africa (BRICS) (Schmidt 2015).
Theoretically speaking, the concept “strategic partnership” is not well defined in the academic literature. The concept denotes “noncommitment”, “non-binding” and “ad hoc” instruments and may be seen as a “strategy of cooperating while competing” (Ness 2012 cf Jain 2014a: 5). The first strategic partnership between India and the EU was signed in 2004, and a joint action plan appeared in 2005 and was revised again in 2008.
The author would like to thank one anonymous referee for clarifying these points.
The EU is increasingly relying financially and economically on China and has a declining leverage in international negotiations after the financial crisis (Zhimin 2013: 184-185). This illustrates a paradox since the EU relies on a soft power version of foreign policy, but a budget squeeze and the cutting down on ODA and other traditional soft power remedies reflect a declining influence in world affairs. These instruments were supposed to promote the diffusion of traditional EU values and norms.
Called the BITA or Bilateral Investment and Trade Agreement.
The American geo-politically motivated trade agreements to create the largest “free trade areas” in history first with NAFTA for North America, TPP for the Pacific, TTIP to the Atlantic and TISA, services covering some 50 states all over the world but excluding China may implicitly and explicitly impact the outcome of India-EU FTA negotiations and the “strategic partnership”.
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Schmidt, J.D. India and the European Union. A precarious relationship. Asia Eur J 13, 443–457 (2015). https://doi.org/10.1007/s10308-015-0430-1
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DOI: https://doi.org/10.1007/s10308-015-0430-1