The EU leadership, led by Ursula von der Leyen, is in New Delhi to discuss a potential free trade agreement with India amid recent tariff threats from the U.S. The visit signifies a pivotal moment as both sides aim to enhance cooperation in technology, defence, and trade, with the second India-EU Trade and Technology Council meeting also scheduled. The focus remains on building a strong and strategic partnership despite external pressures.
On Friday, top leadership from India and the European Union (EU) is set to convene in New Delhi, kicking off discussions aimed at finalizing an ambitious free trade agreement (FTA). This meeting is significantly framed by the recent threat from U.S. President Donald Trump, who indicated a 25% tariff on goods from the EU as he claims the bloc was created at the expense of the United States.
European Commission President Ursula von der Leyen arrived in New Delhi on Thursday with 20 members of the EU’s College of Commissioners. She will meet with Prime Minister Narendra Modi and key cabinet ministers, including External Affairs Minister S. Jaishankar, Commerce Minister Piyush Goyal, and Finance Minister Nirmala Sitharaman. This marked the first visit by the College of Commissioners to India.
“In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally. I’ll discuss with @narendramodi how to take our strategic partnership to the next level,” stated Von der Leyen via social media shortly after her arrival in India.
These discussions follow Trump’s announcement regarding potential tariffs on EU goods. In his remarks, he expressed a view that the EU was designed to undermine U.S. interests, indicating that the tariffs would generally apply to products like cars and others. In response, the EU stated its intention to respond firmly against these unjustified tariffs.
The meeting aims to revitalize the stalled negotiations surrounding the India-EU FTA, which resumed in 2022 after nearly a decade of inactivity. Key topics for discussion will include collaboration in technology, defence, security, and climate initiatives, highlighting the importance of an evolving strategic partnership.
The second ministerial meeting of the India-EU Trade and Technology Council (TTC) will occur concurrently, overseeing cooperation in various technological sectors and investments. India’s delegation, composed of key ministers, is expected to explore various matters, including telecommunications and advancements in artificial intelligence and semiconductors.
Defence cooperation is emerging as a crucial aspect of the India-EU partnership, focusing on enhanced collaboration between Indian and EU naval forces. Discussions will also touch upon a proposed security agreement to allow India access to EU-led defence initiatives. To further strengthen defence ties, the EU plans to assign a liaison officer to India’s Information Fusion Centre in Gurugram.
Von der Leyen’s visit included paying tribute to Mahatma Gandhi, indicating the significance of this diplomatic engagement. Following their meeting, Jaishankar highlighted the necessity of rejuvenating India-EU relations, reaffirming that such high-level participation exemplifies the commitment to enhancing bilateral ties.
The EU is keen to establish a new strategic framework with India encompassing trade, technology, and digital connectivity. While the EU may address issues surrounding the Russia-Ukraine conflict, India has clarified that dialogue between the conflicting nations is fundamental to reaching a resolution. India has maintained compliance with existing global sanctions and is open to discussions regarding this sensitive subject.
As the EU maintains its position as India’s largest trading partner, the bilateral trade has shown remarkable growth, with significant increases over recent years. In the current fiscal year, the two-way trade in goods reached approximately $135 billion, alongside substantial trade in services and foreign direct investment, underscoring the robust economic ties between India and the EU.
The high-level meeting between Indian leadership and the EU aims to advance discussions on a free trade agreement, particularly in light of U.S. tariff threats. This marks a significant step towards deeper collaboration across various sectors, including technology, defence, and climate action. Both parties appear committed to forging a strategic partnership, navigating challenges while strengthening existing economic ties.
Original Source: www.hindustantimes.com
