Modi and Von der Leyen Aim to Conclude India-EU FTA by 2025
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen target finalizing the India-EU free trade agreement (FTA) by 2025. During von der Leyen’s visit to India, both leaders discussed enhancing cooperation in trade, security, and technology, while acknowledging challenges ahead in negotiations. They expressed commitment to overcoming contentious issues and emphasized the importance of swift action amidst geopolitical uncertainties.
On March 1, 2024, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen announced their mutual goal of finalizing a free trade agreement (FTA) between India and the European Union by the end of the year. This commitment comes during von der Leyen’s significant visit to India with 22 EU commissioners, aimed at enhancing diplomatic ties marked by the looming uncertainties of global trade policies, especially influenced by the United States.
The two leaders discussed various strategies to bolster cooperation, including a security and defense partnership, advancements in artificial intelligence, and a new space dialogue. This initiative also reflects their intent to address mutual concerns arising from recent global economic shifts, particularly those stemming from the unpredictable trade strategies of the Trump administration.
In their discussions, Modi emphasized the importance of a bilateral framework for enhancing collaboration across diverse sectors, including technology and green growth. Both leaders also agreed to intensify efforts in key areas such as semiconductors and renewable energy, highlighting a joint commitment to furthering their economic partnership.
Von der Leyen acknowledged the intricacies involved in finalizing the FTA, which has been under negotiation since 2007. As the two parties prepare for their upcoming trade negotiations in Brussels scheduled for March 10-14, she expressed optimism about the potential success of these discussions in light of current geopolitical developments.
In addition to trade, the leaders underscored the significance of enhanced defense cooperation in response to growing global threats. Both parties acknowledged the urgency of addressing security challenges, particularly in the context of the Indo-Pacific region, which is vital for international trade stability.
The pressure to finalize the trade deal is heightened by pressing concerns from both sides regarding tariffs, regulatory barriers, and market access. Although these discussions have historically encountered difficulties, both Modi and von der Leyen expressed a resolute commitment to overcoming these challenges before the year’s end.
The leaders also addressed the forthcoming implementation of the Carbon Border Adjustment Mechanism, a concern for many countries, particularly those in the Global South. They reaffirmed their commitment to ensuring that this measure considers the interests of developing nations while pushing for a resolution to allow for greater market access on both sides.
The joint statement following their meeting highlighted the necessity for swift action to finalize a balanced and ambitious FTA. They directed their teams towards resolving contentious issues collaboratively, emphasizing their shared goal of advancing negotiations on investment protection and geographical indications.
As discussions progress, both sides recognize the need for strong commitments regarding tariffs on critical EU exports, including automobiles. With political will from both leaders, there is an expectation of significant progress in negotiations, which may lead to the most comprehensive trade agreement in history.
The proposed FTA is projected to greatly enhance economic ties, marking a critical juncture for India and the EU as they navigate a landscape defined by shifting power dynamics and geopolitical uncertainties. The anticipated trade deal is expected to further solidify the EU’s position as India’s largest trading partner, with increasing investment and collaboration across diverse sectors.
In summary, the recent discussions between Prime Minister Modi and President von der Leyen signify a strong commitment to finalize the India-EU free trade agreement by 2025. The two leaders emphasized the need for cooperative strategies in various domains, including security, defense, and technology. They are determined to navigate the complexities of negotiations while addressing critical trade concerns to strengthen economic ties between India and the EU amidst geopolitical shifts.
Original Source: www.hindustantimes.com
