Modi and Von der Leyen Target 2025 for Finalizing India-EU Free Trade Agreement
Modi and von der Leyen aim to conclude an India-EU Free Trade Agreement by 2025, focusing on expanding bilateral cooperation, including security and technology. Their discussions are crucial for enhancing economic ties amidst changing global trade dynamics influenced by US tariffs. The leaders emphasized the importance of mutual commitments to resolve trade challenges and foster stability in the Indo-Pacific region.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen underscored their commitment to completing an India-EU Free Trade Agreement (FTA) by the end of 2025. This initiative comes amidst shifting global trade dynamics influenced by recent US tariff policies. Their collaborative plans include enhanced cooperation in security, defense, artificial intelligence, and space exploration. Von der Leyen is accompanied by 22 EU Commissioners during her landmark visit to India, marking a significant effort to strengthen EU-India relations.
The two leaders have directed their teams to expedite efforts to finalize the long-anticipated FTA, with talks reviving in 2022 after a suspension since 2013. The tenth round of negotiations is scheduled for March 10-14 in Brussels. The FTA aims to boost bilateral trade, which reached approximately €120 billion in 2024, responding to the evolving geopolitical landscape.
During a media briefing, Modi announced a comprehensive cooperation blueprint covering trade, technology, and green growth. The collaboration would encompass advancements in semiconductors, artificial intelligence, and green hydrogen. Additionally, they aim to facilitate research on electric vehicle batteries and develop the India-Middle East-Europe Economic Corridor.
Von der Leyen emphasized the significance of a security and defense partnership, noting the global threats posed by authoritarian regimes. She stressed the necessity for enhanced collaboration to address cross-border terrorism and cyber threats. Modi echoed these concerns, highlighting the importance of stability and security in the Indo-Pacific region.
They also aspire to create an ambitious roadmap for the partnership beyond 2025, anticipating a summit in India later this year. The leaders acknowledge the complexities tied to finalizing the FTA. Challenges such as tariffs, non-tariff barriers, and market access, particularly for agricultural products, remain pivotal.
Furthermore, the discussions highlighted India’s apprehension regarding the EU’s Carbon Border Adjustment Mechanism (CBAM), which could impact developing nations. Officials reaffirmed the need for substantial commitments on various trade aspects to facilitate the agreement, stressing the necessity of cooperation in face of geopolitical challenges.
This FTA, if successful, would be one of the largest trade deals globally, fortifying the EU’s position as India’s primary trading partner. Existing bilateral trade has nearly doubled over the past decade, further emphasizing the potential economic benefits of this partnership.
In summary, Modi and von der Leyen are committed to finalizing the India-EU Free Trade Agreement by 2025 amidst changing global trade dynamics. Their discussions outline various cooperation strategies in commerce, technology, and security, complicated by existing tariff and market access challenges. The leadership expressed determination to address contentious issues, aiming for substantial commitments to enhance trade relations and navigate geopolitical uncertainties more effectively.
Original Source: www.hindustantimes.com
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