India and the EU, motivated by mutual interests, are strengthening ties amid global changes. A free trade agreement is being pursued, with shared concerns about dependence on China. While trade figures show promise, historical challenges in negotiations may complicate future progress.

In diplomatic discussions, India has traditionally been cautious towards the European Union (EU), often opting for bilateral talks with individual nations like France or Germany. Current dynamics, however, suggest a shift influenced by Donald Trump’s political landscape. With India’s burgeoning population of 1.4 billion seeking development and Europe looking for strategic partnerships, both parties are reevaluating their interactions in light of their shared struggles with dependence on China.

On February 28, 2023, in New Delhi, Indian Prime Minister Narendra Modi and EU President Ursula von der Leyen announced their commitment to finalize a mutually beneficial free trade agreement by the end of 2025. They expressed plans to bolster cooperation beyond trade to include security and defense. Von der Leyen remarked, “I want this visit to be the start of this new era. Prime Minister Modi and I share the same view. It is time to take our EU-India Strategic Partnership to the next level. For our security and our prosperity.”

In terms of trade, Europe is currently India’s largest partner, surpassing both the United States and China. In 2023, bilateral trade reached $135 billion for goods and $53 billion for services; however, India’s share of the EU’s goods trade remains modest at 2.2%, ranking as the EU’s 10th largest trading partner. The EU Commission is keen on tapping into new markets within India, focusing on sectors such as automobiles, agricultural products, and beverages.

Despite these encouraging prospects, discussions surrounding a trade agreement have been ongoing since 2007, yet progress has been slow, with previous negotiations halted in 2013. Informal diplomatic sources indicate that while recent talks resumed in June 2022, several significant hurdles remain to be overcome before a formal agreement can be reached.

The evolving relationship between India and the EU signifies a potential shift in global partnerships, driven by both parties’ strategic interests amidst the changing political climate. The commitment to a free trade agreement reflects a mutual desire for growth and enhanced cooperation, particularly in areas affected by common challenges such as reliance on China. However, the history of stalled negotiations underscores the complexities involved in realizing these ambitions.

Original Source: www.lemonde.fr

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