New Delhi: Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on Friday agreed to conclude an ambitious India-EU free trade deal by this year amid fears that the Trump administration’s threat of higher tariffs could adversely impact the global economy.
In their talks, both the leaders also decided to expand two-way defence cooperation, especially in the Indo-Pacific with Vonder Leyen announcing that the European Union (EU) was looking at firming up a security and defence pact with India in line with its partnerships with close allies Japan and South Korea.
The deadline for concluding the trade deal that would be the largest of its kind globally came over 17 years after the two sides first began negotiations for it. The negotiations for the pact was relaunched in June 2022 after they were suspended in 2013 due to a gap in ambition.
“Today, we have decided to create a bold and ambitious roadmap for the India-EU partnership for the period beyond 2025. It will be launched during the next India-EU summit,” Modi said.
India is set to host the summit later this year.
The negotiations for the deal were not moving forward ostensibly in view of the EU’s persistent demands to New Delhi cut tariffs on cars, wine and agricultural products.
The EU Commission president, accompanied by the College of Commissioners or senior political leaders of the bloc’s member nations began her two-day India visit on Thursday. It is the first such visit after the European parliamentary elections in June last.
In his media statement, Modi indicated resolve by the two sides also to move forward on negotiations for an investment protection pact as well as on geographical indications as part of broader efforts to boost investments.
“We have prepared a blueprint for collaboration in the areas of trade, technology, investment, innovation, green growth, security, skilling and mobility,” he said.
“We have directed our teams to conclude a mutually beneficial bilateral free trade agreement by the end of this year,” he said.
Echoing Modi, Von der Leyen said: “We have tasked our teams to build on this momentum and finalise our free trade agreement before the end of this year.”
“We are expecting a lot of our trade negotiators, we told them they should surprise us,” she said.
The prime minister described the growing India-EU cooperation on defence and security as a symbol of “mutual trust” and that both sides will take forward the engagement in areas of cyber security, maritime security and counter-terrorism.
“Both sides agree on the importance of peace, security, stability and prosperity in the Indo-Pacific region,” he said, welcoming the EU’s decision to join the India-backed ‘Indo Pacific Oceans Initiative’.
“We will work together on triangular development projects for sustainable and inclusive development in the Indo-Pacific region and Africa,” Modi said.
Von der Leyen argued that now is the time to step up India-EU security and defence cooperation on land, sea and in space.
She called the Indian Ocean as a “lifeline for global trade” and said ensuring its security is vital, not just for India but for the whole world.
The remarks came amid China’s increasing forays into the region.
“We should also explore expanding our joint naval exercises, building on our very successful operations in the Gulf of Guinea and the Red Sea,” the European Commission chief said.
Finally, we should deepen cooperation in protecting the cables that ensure data connectivity between India and the European Union, she said.
In his remarks, Modi said the India-EU strategic partnership is “natural and organic” and that it is based on “trust” and shared belief in democratic values.
“We welcome the new visa cascade regime of the EU. This will provide better mobility to the abilities of India’s talented youth,” he said.
On connectivity, Modi said concrete steps will be taken to take forward the India-Middle East-Europe Economic Corridor (IMEEC).
“I firmly believe that “IMEEC” shall serve as an engine that drives global commerce, sustainable growth and prosperity in the days to come.” The prime minister said India-EU joint research shall be undertaken on EV batteries, marine plastics and green hydrogen.
PTI
