The European Union has hinted at entering the final stages of negotiations of much anticipated free trade talks with India as Kaja Kallas, EU’s High Representative/Vice President, touched down in India for her first official visit in her capacity.
This came as Mr. Kallas’ visit is set just before a big meeting of European leaders in India and before what both sides of the governments refer to as the end of the negotiations on the India-EU Free Trade Agreement (FTA) dubbed as ‘the mother of all deals’.
On the other hand, the Ministry of External Affairs in India warmly received the visit. According to the Ministry of External Affairs statement by the spokesperson Randhir Jaiswal, the visit provided the opportunity to consolidate the recent high-level engagement as well as grow the Strategic Partnership between India and the EU.
Trade Talks Are in Final Stretch
“After almost a decade of dialogue, India and the European Union are likely to make an announcement regarding the conclusion of FTA negotiations at the 16th India-EU summit to be held in Delhi soon,” an official statement said.
The details of the FTA are likely to involve a reduction in duties for automobiles, wine, and spirits entering India from the European bloc, as well as an increase in India’s exports to the European Union of textiles, electronic equipment, and drugs and pharmaceuticals.
India’s commerce minister, Piyush Goyal, described the agreement as the “mother of all deals” in recognition of its importance. If an agreement is reached, the deal will connect two economies with almost two billion people and provide access to about a quarter of the global gross domestic product.
The resulting deal would be India’s biggest and most ambitious trade deal to date, covering goods and services trade and rules in all 27 nations of the European Union’s customs union, it added.
ALSO READ:
Europe: Eyeing the east as new trade geopolitics unfold
Renewing urgency can be brought in by the global disruption in the pattern of trade as the high US tariffs imposed by the leadership of President Donald Trump pose an ever-increasing threat to traditional supply chains, which in turn has caused a 50 percent tariff to be imposed upon exports to the US from India. This has therefore created urgency in the relationship between Brussels as well as India.
Only just recently, Ursula von der Leyen, now currently the head of the European Commission, announced that “India and Europe are on the cusp of a historic trade agreement. India will thus be a cornerstone of European international trade policy.”
As far as any country is concerned, specifically the country of India, the implication of this agreement is regaining competitiveness which has been lost on the EU market as a result of the termination of General System of Preferences benefits in 2023. This has impacted labor-intensive sectors like garments and engineering items.
Defence and security relations are strengthened
And trade is only half of the equation. Kallas announced that, of course, there is an agreement between India and the EU on a new security and defense partnership, expanding cooperation on maritime security, counter-terrorism, and cybersecurity, which is scheduled to be concluded at the summit.
India currently enjoys a large defense trade bilateral relationship in the major EU countries such as France, Germany, Italy, and Spain, while exports in India for ammunition as well as other types of explosive material show a growth trend in line with regional security concerns.
This diplomatic moment will also see an increase in symbolic action. EU leadership will also join the celebrations of India’s Republic Day as chief guests. For the first time ever, an EU military force will also take part in the Republic Day parade as well.
As a whole, a pattern emerges with respect to a strategic realignment indicated by the Summit meeting, the Trade Agreement, and Defense Partnership. As fragmentation occurs in international trade across the world, there appears to be a shared need felt by Europe and India with respect to a commitment to strategic long-term economic and political alignment.
FOR MORE: https://civiclens.in/category/national-news-civiclens-in/
About the Author
