• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » EU to Focus on Diversifying Crucial Supply Chains

EU to Focus on Diversifying Crucial Supply Chains

EU to Focus on Diversifying Crucial Supply Chains
Source: Bloomberg
July 15, 2020
Bloomberg

The European Union will seek to diversify its supply chains to cut reliance on other nations for crucial assets such as medicines, even as it works to strengthen trade ties with India, the bloc’s top diplomat said.

The reevaluation by the group of 27 countries will mark a shift similar to moves made after the oil crisis in the 1970s when Europe faced high prices amid fuel shortages, said the group’s foreign policy chief Josep Borrell in an email interview ahead of Wednesday’s India-EU trade summit.

“In practice this will mean stockpiling some crucial assets. It is not normal, for example, that Europe does not produce even one milligram of paracetamol,” Borrell said. “This is nothing against India — and we are grateful that India indeed lifted the temporary export restrictions that it had put in place — but it reflects a wider concern.”

India restored exports of hydroxychloroquine and paracetamol as global demand for the drugs grew with the pandemic. Yet as concerns escalated over the reliance on international sourcing for crucial products, calls to reevaluate supply chains grew louder, especially against the backdrop of a worsening conflict between the U.S. and China. While India is the world’s third-largest producer of finished drugs, it depends on China for about 70% of its active pharmaceutical ingredients.

Trade and security will form part of the virtual India-EU summit on Wednesday, according to EU officials in a media briefing on Tuesday, asking not to be identified citing rules. Borrell will be part of the summit, along with Prime Minister Narendra Modi, Charles Michel, president of the European Council, and Ursula von der Leyen, president of the European Commission.

Negotiations over a free trade agreement between India and the EU have been stalled since 2013. While India has sought more access for its services industry along with other demands, EU officials have cited protectionism, high import duties and lack of investment protection among reasons for the lack of progress.

EU funding for Indian infrastructure projects including a metro rail line will form part of Wednesday’s discussions, according to an Indian foreign ministry briefing on Monday.

The EU accounted for $91 billion or 11% of total trade with India in 2019, on par with the U.S. and ahead of China, according to the European Commission.

China Tensions

Discussions around the worst India-China border tensions in four decades are expected to be part of the talks. While the EU has stated its satisfaction about India-China talks for deescalation after a nine-week-long border standoff turned violent killing of 20 Indian soldiers and an unknown number of Chinese troops, concerns about Chinese actions in the region remain.

“The Chinese authorities have repeatedly stressed that they do not have military ambitions and do not intend to use force or participate in military conflicts,” said Borrell. “While words matter in diplomacy, what matters more are actions.”

Borrell’s comments follow his vow on Monday that the bloc would support Hong Kong’s autonomy with a “coordinated” mix of EU-wide and national measures meant to counter China’s new national-security law in the Asian financial hub.

Tensions between the EU and Beijing have been simmering, with allegations that China has spread disinformation about the coronavirus and frustration over Beijing’s curbs on foreign investors featuring prominently in talks between the two last month.

The EU will work with India on strengthening multilateral organizations, as it takes on a role as non-permanent member of the security council, heads the executive body at the World Health Organization and takes over presidency of the Group of 20 in 2022, officials told reporters Tuesday.

Talks will also include World Trade Organization reforms and a possible research-based nuclear agreement between India and the EU, the officials said. The Press Trust of India reported late Tuesday a pact on civil-nuclear cooperation between the two had been finalized, without giving details.

“We are facing a multilateral crisis and if like-minded countries do not work together swiftly to save and improve the system that has been the basis for progress, peace and stability worldwide since the middle of the 19th century, we will regret it,” said Borrell.

RELATED CONTENT

RELATED VIDEOS

Sourcing/Procurement/SRM Global Supply Chain Management Global Trade & Economics Pharmaceutical/Biotech
KEYWORDS Asia Pacific Europe Global Trade & Economics Pharmaceutical/Biotech Sourcing/Procurement/SRM
Bloomberg

Bombardier CEO Sees Blue Skies and Less Debt After Major Overhaul

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • karen-jones.jpg

    Watch: Four Industry Disrupters Impacting Logistics

    Data Management (Big Data/IoT/Blockchain)
  • THE SPACE AROUND A COMPUTER KEYBOARD IS CLUSTERED WITH IMAGES GENERIC SHIPPING BOXES

    How Suppliers Can Overcome E-Commerce Supply Chain Challenges

    Data Management (Big Data/IoT/Blockchain)
  • A CSX TRAIN IS SEEN FROM THE FRONT

    CSX’s New CEO Has a Big Idea for Railroads: Carry More Freight

    Rail & Intermodal
  • A ROBOT ARM AND A HUMAN ARM ALMOST TOUCH FINGERS

    AI + SCM: A Formula for Automation and Optimization

    Supply Chain Planning & Optimization
  • A SEATED PERSON HOLDS A SMARTPHONE, SHOPPING

    Retail Consumer Data: The Key to Personalization, or Privacy Violation?

    Regulation & Compliance

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing