Trade talks with the European Union entered their last leg this week — with the India-EU FTA likely to be announced on January 27. Top officials from both countries will also come together to sign a ‘Security and Defence Strategic Partnership’ during the joint India-EU Summit in New Delhi. European Commission President Ursula von der Leyen has repeatedly dubbed it the ‘mother of all trade deals’.
“The FTA will create a market for two billion people, which accounts for about one-fourth of global GDP. It also provides a chance to reduce reliance on China, Russia and the United States. At a time when free trade is under pressure and supply chains are being weaponised, deepening our economic partnership makes perfect sense,” EU foreign policy chief Kaja Kallas told The Indian Express.
The long-sought free trade agreement is likely to be announced during the India-EU Summit next week. According to a Reuters update quoting government sources, the two countries are expected to announce the conclusion of protracted negotiations on Tuesday. A formal update is expected on January 27 after Prime Minister Narendra Modi meets with top European officials.
Europe as an alternative to Russian defence equipment?
Kallas highlighted a “qualitative shift” in the India-EU partnership over the years — noting that the country was now a “major strategic partner” for the bloc. The two countries will also sign a new Security and Defence Partnership next week to “expand cooperation in areas such as maritime security, counterterrorism and cyber-defence”.
“India is a sovereign nation and will make its own choices about procurement. But one thing is clear: Europe is a reliable partner, Russia is not,” she told the publication.
‘Working to solve sticking points like CBAM’
European Commission President Ursula von der Leyen told Times of India that efforts were underway to iron out last-minute kinks as the negotiations wound down.
“Both sides are working intensively to address the remaining challenges and bring the agreement over the line. We are committed to investing every effort to find workable, mutually beneficial solutions on issues such as CBAM, automobiles, and steel. The final mile is always the hardest, but it will be more than worth it,” she told ToI during a recent interview.
Von der Leyen noted that the 27-nation bloc offered its trade allies “reliability, stability and genuine partnership built for the long term”. She also indicated that the FTA would eliminate some €4 billion in tariffs for exporters across segments and highlighted the jobs it would generate “for millions of workers” in both India and Europe.