The EU aims to persuade India to reduce tariffs on cars and wine to improve relations and lessen dependence on China. President Ursula von der Leyen’s visit aims to deepen cooperation amid rising geopolitical tensions. Despite potential agreements, analysts highlight substantial cooperation will require alignment of strategic priorities between the two parties.
The European Union (EU) plans to urge India to lower tariffs on significant products like cars and wine to enhance bilateral relations and decrease reliance on China. A high-ranking EU official noted that the Indian market remains relatively insulated from these key commodities, impacting trade interests for EU member countries.
During a two-day diplomatic visit, scheduled to begin Thursday, European Commission President Ursula von der Leyen will meet with Indian Prime Minister Narendra Modi. Accompanied by leaders from EU member states, they aim to solidify strategic partnerships. Initial discussions will also involve India’s trade minister, Piyush Goyal.
As geopolitical strains mount, the EU’s call for tariff reductions coincides with U.S. threats of retaliatory tariffs, stirring anxiety among Indian exporters. Analysts have estimated potential export losses to reach $7 billion annually. As of 2024, the EU has become India’s largest goods trading partner, with trade estimated at approximately $126 billion, reflecting a nearly 90% increase in the past decade.
To bolster economic ties and security, the EU’s strategy includes diversifying supply chains and decreasing dependency on China. Additionally, India is viewed as a crucial ally in mitigating security risks, such as cybersecurity threats and geopolitical tensions in the Indo-Pacific region.
In discussions, Leyen is expected to request India’s endorsement of a stable resolution for Ukraine’s security issues. Both nations may also consider collaborating on defense agreements and sharing classified security information to combat shared threats, such as cyber attacks and terrorism.
However, analysts like Ajay Srivastava express skepticism, stating that substantial advancements in negotiations are not guaranteed. He stresses that recognizing India as a data-secure nation is paramount for effective cooperation. The differing priorities—India’s focus on border tensions with China versus the EU’s attention to the Ukraine crisis—add to the complexity of achieving significant outcomes in talks.
The EU aims to strengthen relations with India by advocating for lower tariffs on key products, responding to geopolitical tensions. Collaborative efforts are also focused on reducing reliance on China and enhancing security partnerships. Despite the potential for progressive agreements, experts caution that successful negotiations require addressing both sides’ priorities and concerns.
Original Source: m.economictimes.com
