Days before the signing of a free trade agreement between India and the European Union, German Chancellor Friedrich Merz said that “the era of great powers” presents an opportunity for countries favouring regulations to join forces against protectionism and isolationism.
“In a few days, the President of the European Commission will travel to India to establish the principles of a free trade agreement between the subcontinent and the European Union,” Merz said at the World Economic Forum Annual Meeting
The German chancellor said he wants high growth in Europe and will do everything possible to achieve that.
“I was in India a week ago, and I have no doubt whatsoever that the era of great powers presents an opportunity for all of us and for all countries that favour regulations above arbitrary rule and see benefit in free trade than in protectionism and isolationism.” The chancellor said the EU is joining forces with new partners in this direction.
He also referred to the efforts to finalise trade agreements with Mexico and Indonesia.
On the cusp of singing deal- EU President
On Tuesday, European Commission President Ursula von der Leyen said here that the European Union is on the cusp of signing a historic trade agreement with India, called ‘the mother of all deals,’ which will create a market for 2 billion people, or about one-fourth of global GDP.
She said the deal would provide a crucial first-mover advantage for Europe in one of the world’s fastest-growing and most dynamic continents.
“Europe wants to do business with the growth centres of today and the economic powerhouses of this century.” She said.
Deal signing timeline
President of the European Council, Antonio Costa, and von der Leyen will be in India from January 25 to 27 to grace the Republic Day celebrations as chief guests and to hold summit talks with Prime Minister Narendra Modi.
The two sides are set to announce the conclusion of negotiations on the much-awaited free trade agreement at the India-EU summit on January 27.
The European Union is India’s biggest trade partner, with bilateral trade in goods recording USD 135 billion in the financial year 2023-24. The free trade agreement is expected to significantly enhance trade ties.
The proposed agreement is expected to bring a qualitative change by deepening overall bilateral ties across a range of sectors, at a time when the world is witnessing trade disruptions due to US President Donald Trump’s tariff policy.