Ursula von der Leyen announced that the EU and India aim for a free trade agreement this year. She discussed enhancing trade in key sectors and establishing security ties with India. Negotiations have resumed after years of pause, amid rising international trade tensions, underscoring the importance of a strong EU-India partnership.

Ursula von der Leyen, the head of the European Commission, indicated that the European Union (EU) and India are striving for a free trade agreement within this year. Speaking in New Delhi, she acknowledged the challenges ahead but emphasized the significance of timing and resolve, stating that achieving such an agreement would result in the world’s largest trade deal of this nature.

During her visit, which includes the entire College of Commissioners – their first since the European parliamentary elections in June 2024 – von der Leyen met with Prime Minister Narendra Modi. She highlighted the ambition to enhance trade and investment collaboration across various sectors, including semiconductors, artificial intelligence, and clean technology.

The negotiations for a long-awaited free trade agreement were revitalized in 2021, with another discussion round scheduled for March and an India-EU summit planned later this year. Von der Leyen also underscored the mutual goal of strengthening security and stability ties, proposing a potential Security and Defence Partnership with India akin to those established with Japan and South Korea.

In light of growing tensions between the United States and Europe on trade tariffs and geopolitical issues, particularly following Donald Trump’s re-election, it has become increasingly vital for the EU to foster robust trade and security relations with India. Analysts note that despite ongoing negotiations, tangible progress remains elusive as substantial disparities in areas such as agriculture and manufacturing continue to challenge the process.

Yet, approximately 6,000 EU companies are operating in India, making the EU India’s largest trade partner in goods, with bilateral trade soaring to $135 billion in 2022-23. The past decade has seen this figure nearly double. India, previously hesitant regarding free trade agreements, is now actively pursuing agreements across multiple international partners.

The European Union, under Ursula von der Leyen’s leadership, is making substantial efforts to finalize a free trade agreement with India within this year, despite existing challenges. Strengthening ties in trade and security has become crucial against the backdrop of shifting global dynamics. Renewed negotiations and discussions signal both sides’ commitment to enhancing their economic collaboration and establishing a strategic partnership moving forward.

Original Source: www.bbc.com

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