Extraordinary And Plenipotentiary Diplomatist July 19 Edition . | Página 56
HAPPENINGS
BREXIT AND ITS IMPLICATION FOR INDIA
Below is the synopsis of the lecture delivered by Amb (Retd.) Bhaswati Mukherjee
at the Jadavpur Association of International Relations, Kolkata
B
rexit changed everything including the public mood.
Brexit is regarded as the classic case study in the
context of contemporary challenges that it poses to liberal
democracies. There are many factors leading to Brexit, the
prolonged and unhappy divorce of the United Kingdom from
Europe. May’s failure to sell the ‘deal’ to a sceptical House
of Commons resulted in her stepping down. The frontrunner
to become PM, Boris Johnson, has vowed to take UK out of
the EU by 31st October 2019, with or without a deal.
The EU is India’s largest trading partner, accounting for
around 13% of India’s total trade in goods in 2017. India
contributes around 2.3% of total EU trade and is the EU’s
ninth biggest trade partner. With €91 billion worth of India EU
trade and €19.4 billion of India UK trade at stake, all partners
needed to think through this issue carefully in the business
and commercial context. Services are also an important
component of EU-India trade.
If in terms of the fi nal Brexit no deal scenario, which
seems increasingly likely, Indian business in UK, would be
denied access to the EU market, the result would be the fl ight
of Indian business from UK to Europe. The UK has been
seen by Indian fi rms as a gateway to the European Union. A
common market has so far ensured these companies barrier-
free access to the EU countries.
A hard or no deal Brexit would inevitably impact more
than 800 Indian companies in UK in crucial sectors of British
economy reportedly generating more than 110,000 jobs as
well as fl ows of tourism and business from India to UK.
Others note that UK’s exit from the EU represents a win-
win situation for India. They remain of the view that India
could fi ll the trade gap with regard to manufactured goods. In
the present context, this does not seem to be likely. The current
anti-foreign sentiment in the UK complicates the negotiations.
The Indian Ministry of Commerce confi rmed in mid-2017
that India and the UK could work on a FTA only after the lat-
ter is offi cially out of the EU. The Commerce Ministry then
commenced an internal ‘audit’ and analysis of the trade issues
with UK in anticipation of the negotiations. The content of a
future India UK trade agreement would depend on the kind
of deal and terms of exit that UK would negotiate to fi nalize
Brexit. UK cannot sign a trade agreement with India as long as
it remains part of the EU. The situation is complex since India
would insist on inclusion of Mode 4 (Mode 4 covers the tem-
porary movement of natural persons) in a post Brexit scenario.
According to informed sources, India will also refuse to give a
separate dispensation to UK in areas within EU’s competence.
The continuing impasse over Brexit demonstrates
the danger of populism and populist policies impacting
international peace and security, be it Northern Ireland or
North Korea. Brexit threatens the fragile peace in Northern
Ireland. The hardcore of Brexiteers are willing to gamble with
the unity of Britain and to risk losing Scotland and Northern
Ireland in their quest to be rid of Europe once and for all.
As described by a prominent EU politician, Theresa May’s
eff orts to secure a deal is like trying to make an omelette
while taking out the egg!
CAN INDIA AND NORWAY TAKE
A LEAP INTO THE NEW ERA OF PARTNERSHIP?
W
hen Norwegian Prime Minister Erna Solberg arrived
in India at the beginning of this year, it was not only
the fi rst time in ten years that the country was visited by a
prime minister from Norway, but it was one of the largest
delegations from Norway ever to visit India.
Delivering a lecture at India International Centre, H.E.
Nils Rangnar Kamsvåg, Ambassador of Norway to India,
outlined Norway’s India Strategy. Ambassador Kamsvåg said
that the strategy is really a formalisation of what has already
been happening.
“The focus areas of the strategy are based on Norway’s
national and global interests, Norway’s competitive edge,
and the priorities of India. There will be an emphasis
on political contact and government-level cooperation,
business cooperation, and research
cooperation,” added Ambassador
Kamsvåg.
He also outlined the four priority areas identifi ed in the
strategy which are: Democracy and rule-based world order,
Ocean, Energy & Climate and Environment.
Chairing the session, Ambassador Ashok Sajjanhar said
“There has been a surge in trade, investments, transfer-of-
technology and other contacts between the two countries. The
present growth in Indo-Norwegian eco-commercial ties has
been powered by a common interest. Norway is an important
partner to India, where increased trade, investments and
economic cooperation with mutual benefi ts are the highest
priority for our two countries.”
56 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 7 • July 2019, Noida