India and the EU are set to finalize a long-awaited free trade agreement by the end of this year, following a meeting between Prime Minister Modi and European Commission President von der Leyen. Discussions focused on enhancing cooperation across various sectors amid potential U.S. tariffs. Both leaders expressed a strong commitment to elevate the strategic partnership, which is vital given the EU’s role as India’s largest trading partner.
India and the European Union (EU) have taken significant steps to finalize a long-delayed free trade agreement, with a target completion date by the end of this year. This development was confirmed during a meeting in New Delhi between Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, where they emphasized boosting cooperation in various sectors such as trade, technology, connectivity, and defense.
Modi highlighted the commitment from both sides to elevate their partnership, stating, “India-EU strategic partnership is natural. Its core is trust and shared belief in democratic values.” The EU’s von der Leyen underscored the importance of the trade deal, noting it would be the largest of its kind globally, enhancing trade dynamics against the backdrop of potential U.S. tariffs on EU goods.
During her address in New Delhi, von der Leyen remarked on the need for pragmatism in negotiations: “It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities.” She is in India for a two-day visit, accompanied by leaders from EU member states to strengthen strategic ties.
Talks on this trade agreement resumed in 2021, having faced challenges over market access for products like automobiles and alcoholic beverages. As negotiations are set to continue in March, India benefits significantly from its trade relations with the EU, which is its largest trading partner. In the fiscal year 2023-24 alone, India and the EU’s trade surpassed $130 billion, indicating a robust growth of about 90% over the last decade.
The potential for a deeper India-EU partnership is recognized by both leaders, with von der Leyen stating this visit could signify a new era in bilateral relations. Modi and von der Leyen aim to push the EU-India Strategic Partnership to new heights, especially in light of recent economic pressures, including tariff implementations by the U.S.
The agreement to finalize the India-EU free trade agreement marks a pivotal moment in enhancing bilateral relations, aiming for completion by year-end. Both leaders emphasized their commitment to fostering cooperation in multiple sectors. The trade deal is poised to not only strengthen economic ties but also position the partnership as a defining global alliance of the century.
Original Source: apnews.com
