European Union, India free trade pact to be world’s largest deal: Ursula Von Der Layen
India and the European Union have agreed to go ahead with a free trade agreement this year
- NEW DELHI — India
and the European Union have agreed to go ahead with a free trade agreement this
year, which will be "the largest deal of this kind" in the world,
European Commission President Ursula Von Der Leyen said on Friday.
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- "A free trade agreement between the EU and India would
be the largest deal of this kind anywhere in the world. I am well aware it will
not be easy. But I also know that timing and determination count and that this
partnership comes at the right moment for both of us," Ursula Von Der
Leyen, who is on a two-day visit to India, said.
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- "This is why we have agreed with Prime Minister Modi to
push to get it done during this year. And you can count on my full commitment
to make sure we can deliver," she said.
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- In an oblique reference to US President Donald Trump’s
high-tariff policy, Ursula Von Der Leyen said the 27-nation bloc, as well as
India, are facing "geopolitical and geoeconomic headwinds" and
"a more aggressive posture from major powers".
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- "The EU and India have potential to be one of the
defining partnerships of the century. Our partnership will be around trade and
technology, security and defence, and connectivity. Batteries, pharma, chips,
clean hydrogen will be among areas of focus," she said.
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- The announcement comes in the wake of the geopolitical and
geoeconomic churn that is taking place with Trump embarking on an ‘America
First’ policy that has added to global uncertainties. The trade war that Trump
has triggered has cast a shadow on the revival of the world economy. Pressure
has also mounted on European countries to divert more resources to prop up
defence, which could hit the production of other goods and spending on social
welfare.
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- The EU is also exploring a future security and defence
partnership with India, modelled on the lines of agreements that have been
signed with Japan and South Korea.
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- Commerce and Industry Minister Piyush Goyal held discussions
with his European Union counterpart on Friday morning.
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- “Had a candid and insightful discussion with EU Trade
Commissioner Macros Sefcovic over breakfast today on the India-EU FTA and the
progress of the Trade and Technology Council. Exciting times are ahead as we
work towards elevating our trade & investment ties to the next level as
trusted partners,” the Indian Minister posted on X.
