The European Union is close to finalising a long-pending free trade agreement with India, with negotiations now in what EU leaders describe as a decisive phase. European Commission President Ursula von der Leyen said that while some work still remains, the two sides are close to a breakthrough that could reshape global trade ties as she spoke at the World Economic Forum in Davos on Tuesday.
“There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP,” von der Leyen said as she addressed leaders and business executives at the World Economic Forum in Davos.
EU indicates strong political push to close India deal
Von der Leyen linked the momentum in trade negotiations with deeper diplomatic engagement, announcing that she will travel to India next weekend after the Davos meeting.
She said the visit is aimed at advancing the free trade agreement and strengthening broader economic cooperation between Europe and India. She said, “Europe will always choose the world, and the world is ready to choose Europe.”
High-level India visit and summit to improve negotiations
At the invitation of Prime Minister Narendra Modi, the EU leadership will undertake a three-day state visit to India starting January 25. During the visit, the two sides will co-chair the 16th India-EU Summit on January 27, meet President Droupadi Murmu, and hold both restricted and delegation-level talks with Prime Minister Modi. An India-EU Business Forum is also expected to be held alongside the summit.
India-EU strategic partnership gains momentum
Ministry of External Affairs said India and the European Union have been strategic partners since 2004, with cooperation expanding significantly in recent years. It recalled that the 15th India-EU Summit was held virtually in July 2020 and noted that engagement deepened further after the visit of the EU College of Commissioners to India in February last year. The ministry said the participation of EU leaders in the Republic Day celebrations and their presence at the upcoming summit are expected to further strengthen the strategic partnership.
Piyush Goyal also called it ‘mother of all deals’
Commerce and Industry Minister Piyush Goyal has also described the proposed India-EU free trade agreement as the biggest deal India has negotiated so far. “I have done seven deals so far. All with developed economies. This one will be the mother of all,” Goyal told reporters on Friday adding that negotiations are in the final phase. During his tenure, India has signed trade agreements with the UAE, Australia, the European Free Trade Association, the UK, Oman, New Zealand and Mauritius, with several more, including a bilateral trade agreement with the United States, still under discussion.