EU Leadership Engages with India to Advance Free Trade Talks amid US Tariff Threats

European Commission President Ursula von der Leyen visits New Delhi to discuss a free trade agreement with India amid threats of US tariffs on EU goods. Key areas of focus include cooperation in technology, defense, and climate change. The EU and India aim to significantly enhance their strategic partnership, leveraging trade and investment opportunities.

European Commission President Ursula von der Leyen, accompanied by 20 members of the EU’s College of Commissioners, arrived in New Delhi to engage in discussions aimed at advancing a free trade agreement (FTA) with India. This visit comes amid discussions regarding U.S. President Donald Trump’s intentions to impose 25% tariffs on goods imported from the EU, heightening the urgency of collaboration between India and the EU.

During her official meetings, President von der Leyen expressed that ,”In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally.” These engagements include dialogues with Indian Prime Minister Narendra Modi and various cabinet members aimed at boosting cooperation in critical areas such as technology, defense, and climate action.

The India-EU FTA negotiations, which resumed last year after a delay, are a significant focus for the leadership talks. Enhanced cooperation in sectors like green technology and defence is also anticipated during the meetings, with particular emphasis on the security of information and strengthening ties between the Indian Navy and EU member states.

Furthermore, the second ministerial meeting of the India-EU Trade and Technology Council (TTC) is expected to solidify collaboration in digital and strategic technologies, as well as on significant topics such as telecommunications and artificial intelligence. The EU has established a TTC only with India and the United States, which underscores its strategic significance.

In her visit, von der Leyen honored Mahatma Gandhi at Rajghat. Following this, Indian External Affairs Minister S. Jaishankar remarked about the importance of this engagement for deepening India-EU relations. Dialogue will also include discussions surrounding the ongoing Russia-Ukraine conflict and the sanctions imposed by the EU and their implications.

As the EU stands as India’s leading trading partner, bilateral trade has surged by 90% in the last decade, amounting to $135 billion in goods trade in the 2023-24 fiscal year. This partnership also extends to foreign direct investments, with EU investment in India amounting to approximately $117.4 billion. Both sides appear dedicated to enhancing this important partnership at a time of global economic uncertainty.

The visit of European Commission President Ursula von der Leyen to New Delhi represents a critical opportunity for both India and the EU to enhance their strategic partnership, particularly in the face of external economic pressures. As discussions progress on a free trade agreement and cooperation in technology and defense, both parties are poised to strengthen their economic ties significantly. This engagement underscores the growing significance of India-EU relations in an increasingly competitive global environment.

Original Source: www.hindustantimes.com