India-EU Investment Protection Agreement Under Negotiation; GI Pact Needs Legal Changes: Piyush Goyal

New Delhi, Oct 27 (KNN) India and the European Union (EU) are negotiating an Investment Protection Agreement (IPA), while a separate agreement on Geographical Indications (GIs) will require certain legal changes, Commerce and Industry Minister Piyush Goyal said.

He said the ministry would introduce the required legal changes in Parliament.

“Discussions are underway on a bilateral investment agreement or the IPA, and for the GI pact, we need to make some legal changes,” Goyal told reporters here, PTI reported. 

India and the 27-member European Union announced the conclusion of negotiations for a free trade agreement (FTA) on January 27. The agreement, described as the ‘mother of all deals’, is expected to expand trade and investment ties between the two sides.

Investment and GI Protection

The proposed IPA aims to provide protection to investments made by companies and investors in each other's markets through safeguards against unfair treatment, unlawful expropriation and investment-related disputes.

The EU is already a major investor in India, with around 6,000 European companies operating in the country.

The proposed GI agreement would protect region-specific products from imitation and misuse of their names in each other's markets. It could cover Indian products such as Darjeeling tea, Basmati rice and handicrafts, alongside European products such as Feta cheese.

Pacts to Follow FTA Implementation

Goyal noted that the investment protection and GI agreements would come into force after the implementation of the India-EU FTA.

The trade agreement is likely to be signed in December and could come into effect in March or April next year, he added.

The minister said India's young and skilled workforce, expanding middle class, fast-growing economy and adoption of modern technology make it an attractive investment destination.

With preferential access to markets accounting for 76 per cent of global GDP, the FTA is expected to significantly expand India's trade opportunities, he added.

(KNN Bureau)