India and EU Discuss Sanctions and Trade During Von der Leyen’s Visit
Ursula von der Leyen’s visit to India is focused on preventing restricted technologies from reaching Russia amidst ongoing sanctions. Discussions will also address India’s high tariffs and the potential for a trade agreement. India is noted for being a significant supplier of dual-use items to Russia, raising concerns among EU officials. Collaboration between India and the EU is necessary as geopolitical dynamics shift.
European Commission President Ursula von der Leyen will visit India beginning Thursday to discuss strategies for preventing restricted technologies from reaching Russia, as part of ongoing sanctions enforcement. Kimmo Lähdevirta, Finland’s ambassador to New Delhi, emphasized the need for Indian companies to refrain from supplying electronics and other dual-use items that could support Russia’s military efforts in Ukraine, asserting that this is an obligation of a “responsible nation.”
During her visit, discussions will also cover enhancing market access, specifically addressing India’s high tariffs on cars and wine, as part of free trade agreement negotiations that resumed after a nine-year hiatus in 2022. Ambassador Lähdevirta pointed out that while there has been some positive momentum towards trade enhancement, substantial reductions in tariff and non-tariff barriers will be necessary to finalize any deal.
Reports indicate that India ranks as the second-largest supplier of dual-use goods to Russia, trailing only behind China, which complicates international efforts to restrict the flow of materials to bolster President Putin’s war activities. In October, EU and Indian sanctions envoys met to deliberate on stopping these materials from reaching Russia.
Despite India’s significant trade relations with Russia—primarily as a supplier of crude oil and military equipment—New Delhi has refrained from condemning Russia’s actions in Ukraine. Instead, India advocates for dialogue and diplomacy to resolve the conflict. Official sources within India’s Ministry of External Affairs suggest a commitment to addressing sanctions violations collaboratively with the EU, stating that the trade ministry is currently reviewing relevant information provided by EU representatives.
Indian officials assert that they have enacted United Nations sanctions and have been informing companies about export controls, reporting no detected violations to date. The possibility of advancing negotiations with the EU is complicated, however, by the new tariff threats from U.S. President Donald Trump, who has adopted an ‘America First’ stance that could impact both allies’ trade agreements.
Comments from Prime Minister Narendra Modi, who met President Trump shortly after the latter’s return to office, reveal concerns over potential duties on Indian exports and increasing demands for the purchase of U.S. goods. Further, Ambassador Lähdevirta stated that India and the EU must strengthen cooperation, noting that “geopolitics has certainly changed and is different from a decade ago” and alluding to the implications of U.S. tariffs.
The visit of European Commission President Ursula von der Leyen to India aims to enhance cooperation regarding technology sanctions against Russia, alongside addressing high tariffs in trade negotiations between the two parties. As India grows increasingly significant as a supplier of dual-use goods to Russia, the need for responsible practices is emphasized. Navigating the complexities of U.S. tariff threats further complicates potential agreements, underscoring the evolving geopolitical landscape.
Original Source: www.business-standard.com