Modi and Von der Leyen Aim to Finalize India-EU FTA by 2025

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have targeted the end of 2025 to finalize the India-EU Free Trade Agreement. Discussions encompassed various cooperative measures across sectors such as artificial intelligence, defense, and trade. Both leaders acknowledged ongoing contentious issues but expressed strong political commitment to expedite negotiations amid a changing geopolitical landscape.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have set an ambitious deadline to finalize the India-EU Free Trade Agreement (FTA) by the end of 2025. This commitment was made during Von der Leyen’s visit to India, accompanied by 22 members of the EU College of Commissioners, marking her first trip to a non-European nation since her recent mandate. The backdrop for this crucial undertaking is a shifting global trade landscape influenced by the U.S. administration’s policies.

During their discussions, the two leaders emphasized enhancing cooperation across various sectors, including security, defense, artificial intelligence (AI), and digital infrastructure interoperability. Modi announced that a bilateral framework is being developed to facilitate collaboration in trade, investment, technology, and green growth. The conversation also highlighted initiatives such as joint research in electric vehicle batteries and green hydrogen, alongside plans to advance the India-Middle East-Europe Economic Corridor (IMEC).

Von der Leyen underscored the importance of a security and defense partnership to address common threats, which include cross-border terrorism and cyber-attacks. She emphasized the need for enhanced stability in the Indian Ocean to safeguard global trade. Moreover, Modi commented on the significance of mutual trust as both nations deepen their defense collaboration and tackle issues like cybersecurity and counter-terrorism.

The leaders agreed to prepare a comprehensive roadmap for their partnership beyond 2025, to be revealed at the next India-EU Summit. Von der Leyen stressed that their collaboration on AI should generate positive change for their economies. Additionally, she noted the need to advance efforts in research, innovation, and establish a common technology agenda.

Despite the encouraging dialogue, the leaders acknowledged the presence of unresolved contentious issues in finalizing the FTA, particularly regarding tariffs and market access for European products. The Indian delegation raised concerns about the EU’s proposed Carbon Border Adjustment Mechanism (CBAM), highlighting its potential implications for developing nations. This concern underlines the complexity of negotiations that must address both economic interests and broader environmental considerations.

In concluding discussions, there was a strong commitment from both leaders to expedite the FTA’s finalization within the year. The joint leaders’ statement reiterated the necessity for the negotiating teams to create a balanced and mutually beneficial agreement while overcoming trade barriers. The emphasis on a swift conclusion reflects an earnest political commitment amidst growing global economic uncertainties.

Prime Minister Modi and President von der Leyen have initiated a robust agenda aimed at concluding the India-EU Free Trade Agreement by 2025. Their discussions encompassed broader collaboration on security, technology, and trade, although several challenges remain. Addressing these challenges, including tariffs and environmental policies, will be crucial to achieving a successful FTA, fostering deeper ties between India and the European Union.

Original Source: www.hindustantimes.com