India and the EU have agreed to finalize a long-pending free trade agreement by year-end. The agreement aims to strengthen cooperation in multiple sectors, including trade and defense. Discussions were led by Indian Prime Minister Narendra Modi and EU President Ursula von der Leyen in New Delhi, emphasizing trust and shared democratic values. The EU sees this deal as a game-changer amid potential U.S. tariffs.
India and the European Union (EU) have reached an agreement to finalize a long-awaited free trade agreement within this year. This monumental decision was highlighted during the meeting between Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in New Delhi. The discussions between the two leaders also focused on strengthening collaboration in various sectors including trade, technology, connectivity, and defense.
Prime Minister Modi emphasized the strategic partnership between India and the EU, stating that its foundation lies in mutual trust and shared democratic values. He noted that both parties have directed their teams to expedite the negotiation process to conclude the free trade deal by the end of the year. The European Commission chief described this anticipated agreement as potentially the largest free trade deal globally.
Amid uncertainty regarding U.S. tariffs on EU goods, Brussels is intensifying its efforts to solidify this deal with New Delhi. President von der Leyen declared the necessity of pragmatic and ambitious realignment to reflect contemporary realities during her address to a think tank before her meeting with Modi. She expressed her dedication to ensuring the successful delivery of the agreement.
The resurgence of trade negotiations commenced in 2021, although challenges related to market access for sectors such as automobiles and alcoholic beverages have lingered. The next round of negotiations is scheduled for March 2025. India and the EU maintain a close partnership on issues related to foreign policy, security, and technology, with the EU recognized as India’s largest trading partner ahead of both the U.S. and China.
During the fiscal year 2023-24, trade between India and the EU surpassed $130 billion, representing a nearly 90% increase over the last ten years. The presence of over 6,000 European companies in India underscores this growing economic relationship. President von der Leyen articulated a vision for the future, suggesting that this visit could herald a new era in EU-India relations, aiming to elevate their strategic partnership to new heights.
The agreement between India and the EU to finalize a free trade agreement by the end of this year marks a significant milestone in their bilateral relations. Both leaders underscored the importance of collaboration across various sectors, especially in light of current global economic challenges. The anticipated trade deal could redefine the dynamics of international trade for both regions and enhance their strategic partnership moving forward.
Original Source: apnews.com
