India and EU Commit to Finalize Landmark Free Trade Agreement by Year-End
India and the EU have agreed to finalize a long-pending free trade agreement by the end of this year, with discussions focusing on enhancing cooperation in various sectors. Prime Minister Modi and President von der Leyen have emphasized the partnership’s potential amidst global trade dynamics and U.S. tariffs. The next negotiation round is planned for March, furthering this strategic collaboration.
India and the European Union (EU) have reached an agreement to conclude a long-awaited free trade agreement by the end of this year. Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen announced this decision during their recent meeting in New Delhi, emphasizing a commitment to enhancing collaboration across trade, technology, connectivity, and defense sectors. Modi stated that the respective teams have been instructed to expedite the finalization of the trade deal.
During their discussions, Modi underscored that the evolution of the India-EU strategic partnership is fundamentally rooted in mutual trust and shared democratic values. President von der Leyen highlighted that this free trade agreement could be the largest trade deal globally, signifying significant potential for both parties. The EU is targeting the completion of this deal against the backdrop of looming U.S. tariffs on EU goods, which adds future implications for international trade dynamics.
Von der Leyen emphasized the necessity to be “pragmatic and ambitious” in aligning priorities with current global realities and pledged her full commitment to realizing the agreement. The European Commission President is on a two-day visit to India, accompanied by key leaders from EU member nations. The discussions have resumed after a hiatus, with previous sticking points related to market access for various products, including automobiles and alcoholic beverages.
As the EU’s largest trading partner, India exports and imports to the European bloc surpassed $130 billion in the fiscal year 2023-24, reflecting a considerable growth of nearly 90% over the last decade. Additionally, over 6,000 European companies are currently operating in India, indicating the strong economic ties between the regions. Von der Leyen expressed that this partnership between the EU and India represents great potential, stating that it could define the future partnership landscape of this century.
The ongoing trade discussions have become increasingly significant for New Delhi, particularly following recent U.S. decisions to impose tariffs on imports from various nations, including India. Last year, India successfully concluded a trade agreement with certain European countries, committing to substantial investments across industries, thereby reinforcing its commitment to expanding trade relationships with European nations.
In summary, India and the European Union have agreed to finalize a crucial free trade agreement by year-end, with a focus on bolstering cooperation across various sectors. The partnership underscores mutual values and strategic interests amidst evolving global trade dynamics. Active negotiations are set to proceed, aiming to enhance economic ties and propel significant investments within the regions. This development marks a pivotal moment for India and the EU in establishing a robust economic collaboration.
Original Source: apnews.com
