Abstract
The European Union (EU) and India are currently negotiating a bilateral broad-based trade and investment agreement (BTIA). The on-going debate is to whether the EU-India BTIA will be a deep-integration or shallow-integration agreement. This study will identify the key issues that will be addressed in the proposed agreement, including tariff, and non-tariff barrier (NTBs). The paper begins by reviewing existing studies conducted to analyse the impact of a potential agreement. The paper tries to identify the nature of main obstacles to trade by analysing the trade and production structure of both sides, including trade policies regarding NTBs, services, regulatory issues. The implication on the scope of the potential agreement will be determined after identifying such obstacles. The paper recognizes the political economy factor and motivation behind the agreement and recommends that a deep-integrated agreement will benefit both sides as well as strengthen the rule based multilateral trading system.
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