Valdis Dombrovskis News

NEW DELHI : The European Union (EU) has proposed an investment court system for dispute resolution as part of the bilateral investment treaty (BIT) under negotiation alongside the free trade agreement, European commissioner for trade Valdis Dombrovskis said. EU officials plan to discuss the proposal with finance minister Nirmala Sitharaman on Saturday, Dombrovskis said in an interview. In a sign of easing trade tensions, the EU trade chief said that settlement of outstanding disputes at the World Trade Organization (WTO) is also on the agenda.

European Union and India will try to advance talks on a trade deal this week as the bloc’s demands for strict sustainability requirements have become a key stumbling block. European Commission Vice President Valdis Dombrovskis will discuss the proposed pact with Indian commerce minister Piyush Goyal on the sidelines of a Group of 20 trade meeting in India, as both sides seek to diversify their economies away from China. The EU has a strong interest in sealing the trade deal but the bloc’s sustainability regime is complicating its trade negotiations across a number of countries, people familiar with the matter said. The bloc needs to figure out how to communicate more clearly that green elements in the trade talks are legally required to avoid being labeled as protectionist, the people added. The EU sees part of its mission as using its economic weight to promote green goals globally, but other countries are often reluctant to make those kind of commitments, which has snagged negotiations on a range of trade deals from South America to Asia.

Hungary has blocked the approval of a new EU package of financial aid for Ukraine worth €18 billion, which the Kyiv authorities urgently need to cover their ballooning state deficit and keep the economy running against the backdrop of Russia's invasion.

The European Commission is expected on Wednesday to recommend freezing billions of euros in EU funds to Hungary over rule of law concerns.

The war in Ukraine is severely curtailing the European Union's economic rebound from the COVID-19 pandemic with this year's growth forecast sharply revised down, the European Commission warned on Monday.

BRUSSELS—For Europe’s top trade and economic official, the past year was largely about undoing damage. Now the agenda shifts to building anew, which promises to be more difficult.