Modi and von der Leyen aim to finalize the India-EU free trade agreement by 2025, enhancing bilateral cooperation amid changing global trade dynamics. The discussions include commitments to address tariffs, security collaboration, and technology partnerships. Their joint focus emphasizes the significance of mutual trust and tackles related challenges in the contemporary geopolitical landscape.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen declared their commitment to concluding a comprehensive India-EU free trade agreement (FTA) by 2025. This meeting marks von der Leyen’s first visit outside Europe since receiving her new mandate last year, and it highlights a strategic initiative to strengthen ties between India and the European Union amid shifting global economic dynamics due to recent US trade policies.
During their discussions, the leaders emphasized enhancing collaboration on various fronts, including security, defense, and technological advancements. Modi expressed his expectation to finalize a mutually beneficial FTA by the end of the year, urging teams from both sides to expedite negotiations on issues that have remained unresolved since discussions began in 2007.
Despite the challenges that lie ahead, including negotiating tariff structures and non-tariff barriers pertinent to agriculture and automobiles, both leaders remain optimistic. Von der Leyen acknowledged the importance of advancing bilateral trade, as evidenced by the significant €120 billion worth of trade in goods from 2024. She remarked on the expectation that trade negotiators should deliver surprising outcomes given the current geopolitical landscape.
The agenda also includes initiatives such as strengthening cooperation in semiconductors, artificial intelligence, and sustainable technologies like EV batteries and green hydrogen. Both leaders aim to promote security in the Indian Ocean and counter threats like cross-border terrorism through enhanced defense collaboration, recognizing the region’s strategic significance in global trade.
Modi reaffirmed that fostering defense and security cooperation is a clear indicator of the mutual trust shared between India and the EU, highlighting a vision for a comprehensive roadmap for the partnership beyond 2025. As they prepare for the next India-EU Summit later in the year, the leaders aim to champion a more integrated approach to economic and geopolitical challenges facing both regions.
The discussions culminated with a shared commitment to finalize the FTA and undertake measures to address sensitive issues, such as the Carbon Border Adjustment Mechanism introduced by the EU. Indian officials emphasized their concerns regarding this mechanism and called for equitable treatment of developing nations amid evolving global trade frameworks, aiming for strategies that accommodate the interests of all stakeholders.
In summary, Prime Minister Modi and President von der Leyen are striving to finalize the India-EU FTA by 2025, marking a significant leap in bilateral cooperation. The leaders are focused on enhancing trade relations, security collaboration, and addressing contentious issues that have hampered negotiations. This partnership reflects a shared commitment to navigating the complexities of a changing geopolitical landscape, aiming for mutual benefit and growth.
Original Source: www.hindustantimes.com
