EU Leadership Visiting India to Discuss Free Trade Agreement Amid Trump Tariffs Threat

EU leadership, headed by Ursula von der Leyen, is in India for talks aimed at advancing a free trade agreement amidst threats of U.S. tariffs. The delegation includes top officials engaging with Prime Minister Modi on cooperation in technology, defense, and climate. The meetings are critical for deepening strategic ties between India and the EU.

The leadership of the European Union (EU) arrived in New Delhi for crucial discussions focused on establishing a free trade agreement (FTA), particularly in light of U.S. President Donald Trump’s proposal for 25% tariffs on EU goods. European Commission President Ursula von der Leyen is leading a delegation that includes 20 members from the College of Commissioners, making this their first visit to India. Their agenda includes meetings with Prime Minister Narendra Modi and various Indian cabinet ministers, including External Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal.

In a statement on social media, President von der Leyen emphasized the importance of India’s partnership with Europe amidst global conflicts, stating, “In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally.” This diplomatic visit comes on the heels of President Trump’s announcements regarding potential tariffs targeting EU goods, asserting that the bloc was created to undermine U.S. interests.

The EU has threatened to respond “firmly and immediately” against any unjustified tariffs imposed by the United States. Discussions during the meetings are expected to emphasize cooperation in several sectors, including technology, defense, green energy, and climate action, as negotiations for the India-EU FTA resume after nearly a decade-long hiatus. The continuation of the Trade and Technology Council (TTC), established in 2022, will be a focal point during these discussions.

The TTC meeting will include bilateral discussions on telecommunications, artificial intelligence, and semiconductor development, which are crucial for both regions. Indications suggest that defense collaboration will also be strengthened, particularly through coordinated efforts involving the Indian Navy and EU member states. The EU plans to assign a liaison officer to the Indian Navy’s Information Fusion Centre to enhance maritime security cooperation.

In her visit, von der Leyen also honored Mahatma Gandhi by visiting his memorial. Minister S. Jaishankar noted on social media the significance of this visit in rejuvenating India’s engagement with Europe. He highlighted the collaborative efforts from both Indian ministers and EU representatives to strengthen their partnership.

The EU intends to discuss the Russia-Ukraine conflict during these meetings, as India’s stance favors negotiating a mutual resolution rather than imposing further sanctions. Indian officials reaffirmed their compliance with UN sanctions while expressing openness to discussions about any imposed restrictions related to technology exports to Russia.

The economic relationship between India and the EU is robust, with the EU as India’s largest trading partner. Bilateral goods trade reached $135 billion in 2023-24, experiencing dramatic growth in the past decade. Additionally, cumulative foreign direct investment from the EU into India has amounted to $117.4 billion, marking a significant contribution to India’s overall investment landscape.

In summary, the recent arrival of EU leadership in India highlights the significance of advancing a free trade agreement against an unsettling backdrop of potential U.S. tariffs. The meetings are poised to foster deeper cooperation in technology, defense, and economic relations, paving the way for a strategic partnership that benefits both the EU and India amid global tensions. Both parties are committed to constructive dialogue regarding shared challenges, including the ongoing Russia-Ukraine crisis and trade regulations.

Original Source: www.hindustantimes.com