Ireland Trade Minister Simon Coveney hopeful on India-EU FTA, lauds digital payments system

Ireland’s Minister for Enterprise, Trade and Employment Simon Coveney is upbeat on the India-European Union FTA, & has lauded India’s payments systems.

Speaking to our diplomatic correspondent Sidhant Sibal, he said, “I think realistically, we’re probably looking at the second half of the year being a more likely time for a breakthrough there rather than the first half.” India and Ireland trade worth Euro 10 billion per year. On India’s payments system, he pointed out, “Hugely impressive…Everybody is buying and selling using their mobile phones.” During the India visit, he had a meeting with EAM Jaishankar as well. Here is the transcript:

WION: How do you see India as a market? And what kinds of dynamics do you see between trading relationships when it comes to India and Ireland?

Simon Coveney: We see India as a dynamic and huge growth market, there are very few economies in the world that are growing at the pace that we’re seeing here in India. And so, from an Irish perspective, you know, we’re a globalised economy already. And I think you’re likely to see a lot of dynamic young Irish companies choosing to come to India, to build partnerships here to build opportunities here. I hope also we’re going to see more Indian companies come to Ireland as a gateway into the European Union. As we see trade between India and the EU grow significantly in the years ahead and we are as you know, working at the moment on an EU-India Free Trade Agreement, which hopefully can be agreed upon at some point later this year, which can facilitate even more trade, but you know, coming from a relatively small country in the European Union, but a country by the way, that has a very similar history to India, in terms of a colonial past a struggle for independence, and now of course, building a technology-based growth economy. We, I think, can partner in a very dynamic way. And the meetings I’ve had this week with some of the largest companies in India, working with dynamic Irish companies, providing solutions in areas like financial technology in areas like cybersecurity, obviously a big industry around aviation which are very much part of here. There are huge opportunities for growth. So today, we have an annual trade between India and Ireland that’s worth about 10 billion euros per year. But we think that we can create a much-much bigger trade relationship in the years ahead.

WION: So you mentioned about India, EU FTA how hopeful you are on that FTA because it has been years since the negotiations have been happening now & both sides, EU and India go into election cycle. So any deadline, any challenges you look forward?

Simon Coveney: Well, look, I think we need to be pragmatic, and I think we need to be somewhat patient as well in the context of election cycles. You know, I think most people will realise that compromises aren’t easily found in the weeks before elections happen. So the European Union has European elections in June. There’s an election cycle just beginning here as well of course, in India. So, look, as a trading country in Ireland, we want to see an FTA happen, but I think realistically, we’re probably looking at the second half of the year being a more likely time for a breakthrough there rather than the first half.

WION: India’s payment system, you must have seen that how do you see it as an example of a cashless society?

Simon Coveney: Hugely impressive. I have to say you know, when I was walking to the streets of Mumbai, lots of street traders there and I was talking to some of them and it’s a cashless society. Everybody is buying and selling using their mobile phones. Really impressive is what I’d say. And, you know, we have a lot of companies in Ireland that are focused actually on payment systems, digital platforms for payment systems, in terms of protections, against fraud and so on. And this is an area where we’d like to work with India together. I think we can learn a lot from you. And I think you can also potentially learn from some of the successes that our companies have had but it’s an amazing digital transformation that we’ve seen, even basic trading now on the streets, is taking place on the back of secure digital platforms. Very impressive.

Simon Coveney: Well, look, first of all, can I say I, you know, I have huge time for your foreign minister. You know, I know him we’ve worked together on the UN Security Council. He’s a very able operator and very respected internationally. So as you would expect, we had a good conversation in relation to the war on Gaza. We both want to see a ceasefire happen.

We want to see a significant humanitarian aid effort getting to the civilian population of Gaza the desperately need that now. Ireland has been one of the most vocal European countries calling for a ceasefire. Of course, we have strongly condemned the terrorist attack that Hamas perpetrated on Israeli citizens on the seventh of October, that must be condemned. There is no excuse for it. But the war that has followed has taken an extraordinary toll, more than 30,000 people killed, many of them children and women. And really, we need to see an end to that sooner rather than later. And India is a powerful voice internationally and I hope can play their role. On Ukraine, also, an enormous human tragedy. You know, we’re seeing Russian aggression, trying to change international borders by force.

In Europe right now in Ukraine, hundreds of 1000s of people killed. Ireland and all countries in Europe are showing very strong solidarity with Ukraine as they tried to protect themselves and the sovereignty and integrity of their own country. And what I would say is that this is not just a European war. The world needs to take note of what’s happening. If the international community doesn’t stand up to powerful countries that are trying to change international borders by force of arms. Well, then I think we’re in a very dangerous place, if that becomes a precedent that the world accepts, and that is why we’ve taken such a strong position to try to support Ukraine, to defend themselves. And I hope that that can be successful in time as well, India’s voice is a powerful one in the context of that conflict.