Prime Minister Narendra Modi and European Commission President Ursula von der Leyen outlined their commitment to conclude an India-EU free trade agreement by the end of 2025. This significant announcement comes amidst global trade tensions. Both leaders emphasized increased cooperation across several sectors, including security and technology, while addressing challenges posed by existing economic policies and tariffs. The discussion signifies a strategic enhancement of India-EU relations in a rapidly changing geopolitical landscape.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen announced their commitment to finalize a free trade agreement (FTA) between India and the European Union (EU) by the end of 2025. This is a significant step amid global economic shifts influenced by U.S. trade policies. The leaders also discussed enhancing bilateral cooperation in various sectors, including security and technology.
Von der Leyen is visiting India with 22 members of the EU College of Commissioners, marking this as her first trip to a non-European nation since receiving a new mandate last year. The visit underscores the EU’s intention to strengthen relations with India, particularly in light of recent trade tensions stemming from the Donald Trump administration’s tariffs.
In their press interaction, Modi expressed, “We have directed our teams to conclude a mutually beneficial bilateral free trade agreement by the end of this year.” The FTA negotiations, which began in 2007 but were suspended in 2013, resumed in 2022, with the next round of talks scheduled in Brussels from March 10-14.
Despite identified challenges, including tariffs and market access, both leaders emphasized the importance of decisiveness in their negotiations. Von der Leyen remarked on the significance of achieving economic collaboration, noting that two-way trade was valued at €120 billion in 2024.
Further discussions involved cooperation on semiconductors, artificial intelligence, and green technologies. Modi also highlighted plans for joint initiatives on electric vehicle batteries and green hydrogen, aiming to position the India-Middle East-Europe Economic Corridor as a catalyst for global trade.
Von der Leyen raised concerns over rising threats from authoritarian states and emphasized the need for enhanced security cooperation in response to these challenges. Modi echoed these sentiments, stating that the growing defense collaboration represented a “symbol of our mutual trust.”
The two leaders outlined their commitment to creating a comprehensive roadmap for their partnership beyond 2025, aiming for a framework to be presented at an upcoming India-EU Summit. They agreed on escalating cooperation in various areas including technology and multilateral trade interests.
However, contentious issues, particularly regarding tariff barriers and the EU’s Carbon Border Adjustment Mechanism, necessitate careful negotiation. Indian officials voiced apprehensions about the CBAM, while EU representatives highlighted the need for commitments from India regarding tariff reductions for key products.
Both sides acknowledged the importance of a speedy FTA conclusion as well as the need for substantive commitments. The joint statement asserted that negotiations should be balanced, ambitious, and mutually beneficial, urging trusted partnerships to enhance market access.
Von der Leyen concluded by underscoring the promise of the FTA in light of current global dynamics, asserting that it represents an opportunity for a stronger partnership between India and Europe. The potential FTA would constitute a significant trade agreement, enhancing India’s standing as a trading partner within the global arena.
Overall, with shared goals driving the discussions, the intent remains clear: to move swiftly towards finalizing the FTA and advancing collaborative efforts in technology, security, and economic growth.
In summary, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have set forth an ambitious goal to finalize an India-EU free trade agreement by 2025, amidst a backdrop of geopolitical shifts. Increased collaboration in technology, security, and trade is prioritized, signaling a robust commitment to strengthen bilateral ties. The necessity for constructive negotiations on existing contentious issues will be pivotal in achieving these aims.
Original Source: www.hindustantimes.com
