Prime Minister Narendra Modi and European Commission President Ursula von der Leyen aim to finalize the India-EU free trade agreement by 2025. Amid significant geopolitical changes, the leaders are focusing on various collaborations, including defense and technology. The upcoming negotiations will tackle unresolved issues, reflecting a strong commitment from both sides to enhance bilateral relations.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have initiated efforts towards finalizing a comprehensive India-EU free trade agreement (FTA) by 2025. This ambitious goal is set against a backdrop of changing geopolitical dynamics, especially following the trade policies implemented during Donald Trump’s presidency in the United States.
During Von der Leyen’s visit to India, accompanied by 22 members of the EU College of Commissioners, both leaders emphasized strengthening bilateral ties. They discussed various collaborative measures, including a strategic defense partnership and enhanced cooperation in emerging technologies such as artificial intelligence and clean energy initiatives.
The India-EU trade talks, which commenced in 2007, faced hurdles, leading to delays in negotiations. However, both leaders have expressed their determination to overcome these challenges and expand economic collaborations, which saw two-way trade reaching approximately €120 billion in 2024. Negotiations are expected to intensify with the upcoming tenth round of discussions planned for March 10-14 in Brussels.
Von der Leyen acknowledged the complexities involved in the trade negotiations, particularly around tariffs and market access concerning specific sectors, including agriculture and automobiles. At the media interaction, she stated, “Now more than ever, the geopolitical context asks for decisive action,” highlighting the urgency of concluding the trade agreement.
The discussions also touched upon addressing security concerns stemming from cross-border threats and cyber-attacks. Von der Leyen emphasized the necessity for enhanced defense cooperation to counteract rising authoritarian threats, particularly in pivotal regions like the Indian Ocean.
As part of advancing bilateral partnerships, Modi highlighted initiatives in various sectors such as semiconductors, AI, and sustainable energy, along with a focus on research and development. He noted the preparation of a strategic framework for cooperation that extends beyond 2025, set to be discussed at an upcoming India-EU Summit later this year.
Furthermore, both parties acknowledged the importance of key issues that need resolution, including the EU’s Carbon Border Adjustment Mechanism, which poses a significant concern for many developing countries. Indian representatives voiced that while discussions have progressed, there remain substantial concerns that need to be addressed adequately.
Both leaders conveyed a strong political commitment to ensure that negotiations progress swiftly, with Modi emphasizing that a definitive agreement would advance their mutual interests. The upcoming meetings and a decisive approach from both sides are pivotal to formalizing this extensive trade agreement.
In summary, Prime Minister Modi and President von der Leyen are pressing forward with the goal of finalizing the India-EU free trade agreement by the end of 2025. Their discussions encompass a broad range of topics, including economic cooperation, security partnerships, and advanced technologies. The emphasis on a political commitment highlights the urgency and importance of this trade agreement in the context of evolving global geopolitical landscapes.
Original Source: www.hindustantimes.com
