As India’s ties with France have deepened to becoming one of the most consequential bilateral relationships, both countries overcame the limitations of the Covid pandemic to hold the strategic dialogue between NSA Ajit Doval and Emmanuel Bonne, President Macron’s diplomatic adviser. Sitting down for a conversation with TOI, Bonne said, “we work together as sovereign partners, with a strong willingness to address international challenges in a post-Covid world which will make it necessary for like-minded countries to join forces.”
1. What were your discussions with NSA and the Indian leadership?
My discussions are part of the Indo-French Strategic dialogue, where we talk in full confidence on a wide range of security and defenceissues. We have solid, reliable and consistent cooperation on strategic affairs with India. We are committed partners, we have very solid platforms that we work on and we have ambitions. We have a clear vision — in terms of regional security and Indo-Pacific. We’re addressing global issues of terrorism and new threats like cyber. We approach this with one conviction — that we work together as sovereign partners, with a strong willingness to address international challenges in a post-Covid world which will make it necessary for like-minded countries to join forces, based on clear rules and a common understanding of what needs to be done.
2. How would you describe our present cooperation in the Indo-Pacific?
The basis for our cooperation are the speeches by President Macron in Australia and prime minister Modi at the Shangri La Dialogue. They provide a comprehensive framework of cooperation between France and India in the Indo-Pacific. It is based on realities, on shared security needs and shared values. India is a major player in this region but France is also a country of the Indo-Pacific, through French territories, military presence and maritime economic zone in the region. This gives us the leverage for very operational cooperation with India. Primarily in the area of maritime security, but also through increasingly ambitious cooperation on issues such as preserving the environment, the blue economy, and investments that are consistent with international standards and sustainable development.
3. How is the India-France-Australia trilateral working?
The basis of our cooperation is bilateral. But this can be enlarged, with partners like Australia. This trilateral dialogue has begun in September 2020 and has already proven very fruitful. We believe like-minded countries with shared democratic values, can shape the global agenda.
4. As India steps into the UNSC, do France and India have areas of common interest?
France campaigns very actively for India to become a permanent member of the UN Security Council. We believe India has the legitimacy to hold a permanent seat and would make a decisive contribution to international peace and security. In 2021-2022, we want to work together in the UNSC on an ambitious agenda — in- including priorities for France like the Middle East and Africa — and to help bridge gaps in the international community on the most pressing issues. Like the Iran nuclear is- sue. We need India to work with us on finding the right method and the right way to ensure Iran get back into full compliance with the JCPOA and on engaging with other partners for Middle East peace and security and global stability.
5. Terrorism is a priority for both France and India and you have worked closely in FATF. What are the next steps?
Terrorism is a long term threat. When our country was the victim of terrorist attacks last October, India’s public and clear support was invaluable. Now, we should continue to develop our operational cooperation and mobilise the international community to be more consistent and efficient against all terror threats. Terrorism financing is a key issue in this respect, and we are glad India will host this year the third edition of the “No Money For Terror” initiative, that France launched in 2018. Countering hate speech and terrorism inciting on the internet is another field in which we can cooperate. Finally, in the UNSC, India will chair important committees related to the fight against terrorism: we will work together on issues like adopting sanctions against terrorist groups and individuals and their implementation.
6. India’s greatest security challenge is China. How do you see that?
When it comes to the regional environment of India, we trust the Indian authorities to find the right solution with neighbours through peaceful dialogue and negotiation, in order to settle long-standing issues. France, as a permanent member of the UNSC, has a particular role to play in international peace and security. We’re committed to international law, and the peaceful resolution of disputes.
8. India sees China as an aggressor, not only against India but in the region. Do you agree?
When it comes to China, France and its European partners have a very clear strategy, which was set out by the European Union in 2019 which defines China in three words — a partner, a competitor and a systemic rival. What we’re doing with China is to work on conditions which take into account the importance of the role China has to play in international life, but within a very clear framework of international rules. We want to be able to operate with Chinese authorities on the basis of international law, international standards, respect of security of all our partners. It’s both a demanding and engaging approach, aiming to both promote our interests and obtain positive commitments from China— this is true in everything we’re doing.
8. What’s the next step in Rafale acquisitions. Is it co-development?
Defence cooperation is part of our strategic partnership. We are a reliable defence partner of India in the long run. We are proud that all the Rafale jets have been de- livered on time despite the pandemic. As for new opportunities: we are ready to meet Indian needs and requests, to help India enhance its strategic autonomy.
9. Where are we on the Jaitapur nuclear power project? Do you think we can conclude negotiations any time soon?
We are confident we can find a way forward to conclude the negotiations. In a context where our countries are engaged in a green transition, we need an energy mix which includes renewable energies. – We have many Indo-French initiatives in this sector, such as the International Solar Alliance. – but nuclear energy is also a key component of the energy mix.

In March of 2019, the European Parliament and Council enacted Regulation (EU) 2019/452, which established a framework for the screening of foreign direct investments into the European Union. The regulation, which entered into force in April of the same year, applies to transactions taking place post-October 2020 onwards.

The FDI Regulation repre­sents a crucial shift for the EU, as for the very first time, screening of foreign direct investments is being regulated at EU level. In fact, this development has the potential to significantly impact those investors from third countries that consider investing in the EU. More importantly, it can also be of relevance to the interests of EU investors.

As the FDI regulation does not impose a strict regime for EU-wide FDI screening, the final decision on FDI screening rests with the EU member states, which remain sovereign in this crucial area. The focus of the regulation is more on the principles of coordination and cooperation between member states.

“This is a great step in the right direction which will certainly contribute towards an increasingly harmonised and robust screening of FDI in the EU” said Mario Galea, chair of the newly-established offices for National Foreign Direct Investment Screening (NFDIS) in Malta.

Locally, the office has been set up in order to implement this regulation, with the ultimate aim being the protection of EU intelligence, knowledge and technology, as well as its security interests.

The sectors which will be subject to screening are varied and include infrastructure, energy, transport, water, health and communications, among others. A full list can be accessed on the NFDIS website (https://www.nfdismalta.com/).

All interested practitioners, including audit, legal firms, business consultants and all practitioners who are in any way involved in the promotion of foreign direct investment are, therefore, encouraged to get in touch with the NFDIS Office and get updated on the new procedures governing the registration of new investment in Malta.

Practitioners will be informed how they will be required to submit all relevant applications for such purpose with the Office, prior to relevant submission with the MBR. The applications will require determinate information, relating to the investment and ownership structure, including information on the ultimate investor and beneficial.

In case of doubt, the service provider may seek an initial opinion from the Office which will give the necessary guidance as may be required in the case in question.

The Office wishes to reassure practitioners that it is not its intention to create any unnecessary bureaucracy. In fact, in those cases where it is clear that the activities do not require screening, the Office will seek to provide its green light within 24 hours.

In the cases where screening will be required, this will be undertaken with full due diligence on the activity and on the ultimate beneficial owner. This process will take some time to conclude, although the Office will endeavour to conclude the process in the shortest time possible while not compromising, in any way, the extent and quality of the screening to be conducted.

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Bangladesh will have to meet the European Union’s new criteria on human rights to retain its duty-free market access to the bloc as the EU looks to increase accountability and fight impunity, said a top diplomat. 

The EU is scheduled to assess the trade privilege in light of the human rights situation after the bloc became more cautious about it.

“As a major beneficiary of the EBA (Everything but Arms), Bangladesh will have to comply with the new criteria on the human rights to enjoy the benefit on exports,” said Rensje Teerink, head of the EU Delegation to Bangladesh.

Some 61 per cent of Bangladesh’s exports are destined for the EU.

Garment export, which accounts for about 85 per cent of the national sales abroad, rose from $12.49 billion in fiscal 2009-10 to $27.95 billion in 2019-20, according to a recent study by the Bangladesh Garment Manufacturers and Exporters Association.

Of the total export, more than 90 per cent are apparel items and 96.4 per cent goods are covered by the GSP scheme.

On December 7, the European Council adopted a decision and a regulation establishing a global human rights sanctions regime.

This will allow the EU to target individuals, entities and bodies – including state and non-state actors – responsible for, involved in or associated with serious human rights violations and abuses worldwide, no matter where they occurred.

“The new regime enables us to impose sanctions regardless of where human rights violations and abuses occur…,” said Josep Borrell, high representative of the EU for foreign affairs and security policy and vice-president of the European Commission.

“…without having to create new, country-specific sanctions regimes as we had to do until now. This means we have new tools to increase accountability and fight impunity,” he said in a blog.

The EU can also respond to human rights violations by suspending development aid or withdrawing EBA trade preferences, Borrell said.

“So, Bangladesh needs to protect the EBA facility by complying with the new conditions of human rights,” Teerink said in an exclusive interview with The Daily Star recently.

“The Director-General Trade and DG Employment of the EU have been closely monitoring the human rights situation in Bangladesh to be assessed for the next eligibility.”

The new condition on human rights has been communicated with the ministries of commerce, labour and employment and foreign affairs, she said.

Retaining the trade privilege in the EU is important for Bangladesh because the current economic growth of the country happened significantly riding on the bloc’s generous trade benefit over the last five decades.

Once the country graduates to a developing nation from the least-developed country (LDC) grouping in 2024, Bangladesh will face a lot of competition from other countries in the EU, and there is a possibility of losing the market share due to erosion in preference, the envoy said.

“It is very difficult to say exactly how much Bangladesh would be affected due to graduation,” Teerink said, adding that the EU would remain a major market for Bangladesh even after the graduation.

After the expiry of the current EBA, obtaining the GSP Plus status to the EU by Bangladesh would also be very difficult because of a strong export base of the country to the EU.

For instance, the minimum threshold of import value by the bloc from a GSP eligible country should be less than 7.4 per cent of the total imports from all beneficiary countries during the last three consecutive years on an average. Bangladesh’s share was 24.4 per cent in 2018.

In fact, Bangladesh is the biggest beneficiary of the GSP among all LDCs and is alone utilising 67 per cent of the trade preferential treatment because of higher shipment of apparel items.

In order to qualify for the GSP Plus, a country must meet some criteria.

First, a potential country must be considered vulnerable, according to a document of the European Commission on the EU’s GSP.

A vulnerable country refers to a nation which is not classified by the World Bank as a high-income or upper-middle income country for three consecutive years.

Also, a country must have ratified 27 core international conventions in the fields of human and labour rights, the environment and good governance.

The GSP Plus is a special incentive arrangement for sustainable development and good governance. It slashes tariffs to zero for vulnerable low and lower-middle-income countries.

Bangladesh has ratified almost all major conventions except for a fundamental convention of the International Labour Organisation’s Minimum Age Convention.

In major progress, Bangladesh has amended the labour law, bringing down the threshold of the consent of workers required for the formation of trade unions to 20 per cent from 30 per cent.

“I think that is a good and commendable threshold, but it is not enough,” Teerink said, adding that the threshold would not be able to ensure the freedom of association of workers.

To retain the EBA, Bangladesh needs to follow the labour roadmap recommended by International Labour Organization (ILO).

“The EBA is a such a gift that is quota-free and duty-free access to a country, we have to be sure certain basic human rights and labour are respected while products enter the European Union markets,” Teerink said.

“That is why we have this EBA engagement to see where is Bangladesh on trade.”

If certain basic principles are not respected, there would be unfair competition, she said.

There will be an important meeting about the improvement on labour rights this year.

She said there was no doubt that Bangladesh has been progressing economically despite the fallouts of the Covid-19 fallouts.

“We are incredibly proud as Bangladesh is going forward to be graduated to be a developing country.”

She praised the government’s efforts to roll out the stimulus packages for industries.

Bangladesh’s economy needs to be diversified, and at this moment, it is very much dependent on the ready-made garment industry.

“I hope the government will address it in its Eighth Five-Year Plan,” Teerink said.

The ease of doing business is an important area to improve the business climate in the country, according to the diplomat.

Bangladesh, along with other LDCs, has been pushing for an extension of the current GSP status for 10 more years because of the fallouts of Covid-19.

However, she said she was not much aware of the EU’s position in this regard.

Many local trade experts have suggested signing a free trade agreement (FTA) with the EU.

Responding to this, Teerink said, “At this moment, this is not in the discussion of the DG Trade. Maybe in future, the FTA issue might be discussed.”

The issues of responsible business behaviour by retailers and brands of the EU and the low-price issue of garment items of Bangladesh will be discussed in the next meeting of Sustainability Compact, which was signed between Bangladesh and the bloc in 2013 after the Rana Plaza building collapse.

“Very crucial due diligence issues will be discussed in the meeting as many Bangladeshi garment suppliers have been affected by unusual deferral payments by EU retailers and brands during the pandemic,” she added.