India and EU to Discuss Sanctions and Trade During Ursula von der Leyen’s Visit

European Commission President Ursula von der Leyen plans to address concerns over the transfer of restricted technologies from India to Russia during her upcoming visit. Discussions will also cover India’s high tariffs in trade negotiations, amid the complexity of India’s relationships with both Russia and the U.S. as it seeks to maintain balanced international relations.

During her visit to India, European Commission President Ursula von der Leyen is expected to address concerns over the transfer of restricted technologies to Russia, as highlighted by Finland’s ambassador, Kimmo Lähdevirta. He emphasized that Indian companies must adhere to international sanctions against Russia, particularly concerning dual-use items that could support Moscow’s military efforts in Ukraine, portraying this adherence as an element of being a “responsible nation.”

In addition to sanctions discussions, von der Leyen and EU officials will negotiate trade matters, focusing on India’s high tariffs on cars and wine, which are significant barriers in ongoing talks regarding a free trade agreement. The negotiations resumed in 2022 after a nine-year hiatus, although substantial reductions in tariffs and non-tariff barriers are seen as essential for progress.

Reports indicate that India ranks as the second-largest supplier of dual-use materials to Russia, trailing only China, which complicates international efforts to prevent such goods from aiding the Russian war effort. Amidst this, sanctions envoys from the EU and India have conferred to discover strategies for preventing dual-use materials from reaching Russia.

While India maintains a critical trade relationship with Russia—being a key source for weapons and crude oil—it has refrained from condemning Russia’s actions in Ukraine. Instead, India advocates for dialogue and diplomacy as means to resolve the ongoing conflict, and has assured compliance with UN sanctions and export controls, asserting that it has not detected any violations.

Recent tensions concerning potential U.S. tariffs under President Donald Trump pose additional challenges to EU-India trade relations. Although Prime Minister Narendra Modi previously engaged positively with Trump, new demands for increased Indian imports of American goods complicate future negotiations. As geopolitical dynamics evolve, the Finnish envoy stresses the need for heightened cooperation between India and the EU.

In summary, Ursula von der Leyen’s visit highlights critical discussions on sanctions enforcement against Russia, focusing on preventing dual-use technology transfers from India. Concurrently, pending trade agreements remain clouded by high tariffs and potential U.S. tariff threats. India’s dual role as a significant trade partner to Russia and its stance of promoting dialogue in international conflicts complicate relations with Western allies. The evolving geopolitical landscape necessitates strategic collaboration between India and the EU.

Original Source: www.business-standard.com