India and the EU have decided to finalize a longstanding free trade agreement by the end of this year, following discussions between Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. This agreement is expected to be the largest of its kind globally and aims to enhance cooperation in trade, technology, and defense. The urgency is heightened by potential U.S. tariffs affecting European goods.
India and the European Union have agreed to conclude a long-awaited free trade agreement by the end of this year, marking a significant step in their bilateral relations. Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen announced this development during a meeting in New Delhi. They emphasized that their teams have been directed to finalize the agreement while also enhancing cooperation in various sectors including trade, technology, connectivity, and defense.
Prime Minister Modi highlighted the intrinsic partnership between India and the EU, stating, “India-EU strategic partnership is natural. Its core is trust and shared belief in democratic values.” Meanwhile, President von der Leyen indicated that the forthcoming free trade agreement would be the largest of its kind globally, which illustrates the importance of this deal in the current geopolitical landscape.
The urgency for this agreement is underscored by potential tariffs from the United States, with President Trump indicating plans to impose significant tariffs on European goods. In her remarks, von der Leyen stated, “It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities,” reinforcing her commitment to solidifying this partnership.
Having relaunched discussions in 2021, both parties have identified key issues, particularly regarding market access for products like vehicles and alcoholic beverages, that need resolution. The next round of negotiations is scheduled for March 2025. This agreement is especially vital for India given the context of recent U.S. trade policies and their implications.
The EU currently stands as India’s largest trading partner, overshadowing both the U.S. and China, with trade between the two figures exceeding $130 billion in the 2023-24 fiscal year. Approximately 6,000 European companies have established operations in India, further enhancing trade connectivity and economic ties. Von der Leyen expressed an optimistic vision for the future, stating, “I want this visit to be the start of this new era. Prime Minister Modi and I share the same view. It is time to take our EU-India Strategic Partnership to the next level.”
Recognizing the significance of these trade negotiations, India recently entered into a trade agreement with the European Free Trade Association, signaling its intent to attract $100 billion in investments across multiple sectors including pharmaceuticals and manufacturing. This move showcases India’s proactive stance in strengthening its trade relations on a global scale.
In conclusion, the agreement between India and the EU to finalize a free trade deal by the end of this year marks a pivotal moment in their partnership. Both leaders express optimism about expanding cooperation across diverse sectors, setting the stage for a potentially transformative economic relationship. Addressing key issues will be essential in the upcoming negotiations, signifying the importance of this agreement in the broader context of international trade dynamics.
Original Source: apnews.com
