PM Modi and EU Commission President von der Leyen aim to finalize the India-EU FTA by 2025 amid changing global trade dynamics. This significant initiative includes a framework for cooperation across various sectors, including technology and security. Their discussions highlight the complexities involved in negotiations, particularly concerning tariffs, while also addressing joint actions in response to geopolitical shifts.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have set an ambitious target to finalize the India-EU Free Trade Agreement (FTA) by the end of 2025. This initiative is part of their broader strategy to enhance bilateral relations amid shifting global trade dynamics. Von der Leyen’s visit to India, accompanied by 22 members of the EU College of Commissioners, marks the first such diplomatic engagement outside Europe since she assumed her new role.
During their joint press briefing, Modi highlighted that both leaders had instructed their teams to expedite negotiations on a mutually advantageous FTA. This negotiation, which began in 2007 and faced interruptions, resumed last year, with the next round of discussions scheduled for March 10-14 in Brussels. Von der Leyen recognized the complexities involved in finalizing this agreement but expressed optimism regarding the momentum in economic ties, which saw trade between India and EU reach €120 billion in 2024.
Modi elaborated on a potential bilateral blueprint that includes partnerships in trade, technology, security, and green growth. The leaders also discussed collaborations in semiconductors, artificial intelligence, and the initiation of space dialogues. A roadmap was outlined for cooperation extending beyond 2025, with an India-EU Summit anticipated later in the year, although the exact date remains unconfirmed.
Von der Leyen underscored the significance of a robust security partnership to combat threats like terrorism and cyber-attacks, stressing the Indian Ocean’s critical role in global trade security. Simultaneously, Modi emphasized the deepening mutual trust reflected in defense cooperation, aiming for enhanced cybersecurity and counter-terrorism initiatives amid geopolitical tensions.
The leaders acknowledged ongoing challenges in finalizing the FTA, particularly concerning tariffs and market access for various products. India raised concerns regarding the EU’s forthcoming Carbon Border Adjustment Mechanism, set to impact carbon-intensive imports. Both sides emphasized the political commitment required for resolving these issues swiftly, as trade negotiations face sensitive topics like tariffs on automobiles and agricultural products.
In her addressing of the geopolitical landscape, Von der Leyen mentioned that global power dynamics are evolving and pose both challenges and opportunities for the Indo-European partnership. The proposed FTA is anticipated to be the largest of its kind globally, fostering even closer economic ties, as the current bilateral trading relationship is valued at approximately $135 billion, with substantial direct investments from both regions.
Overall, the India-EU FTA talks signify a critical juncture for both economies, seeking to elevate their mutual cooperation amidst a rapidly changing global marketplace and to take advantage of new economic openings created by such engagements.
The discussions between Prime Minister Modi and President von der Leyen reflect a determined approach to finalize the India-EU FTA by 2025, amidst intricate global trade challenges. Their commitment to enhancing cooperation across various sectors, including technology, security, and sustainable development, aims to bolster economic ties significantly. Their strategic partnership is set against the backdrop of evolving geopolitical pressures, underscoring the importance of timely and decisive collaboration in trade negotiations.
Original Source: www.hindustantimes.com
