India EU Free Trade Agreement Amid Trump Tariffs
- The european Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid...
- India's Commerce Secretary Rajesh Agarwal said on Monday that negotiations had been wrapped up and the deal finalised.
- European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are in Delhi, were the announcement is expected.
The european Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.
India’s Commerce Secretary Rajesh Agarwal said on Monday that negotiations had been wrapped up and the deal finalised.
European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are in Delhi, were the announcement is expected.
Both india and the EU are seeking to strengthen strategic and trade ties with the rest of the world as they contend with economic and geopolitical pressure from the US.
Delhi is grappling with 50% tariffs imposed by President donald Trump last year amid talks aimed at securing a trade deal between India and the US that are still dragging on.
The EU has just emerged from a stressful week after Trump threatened to escalate his trade war with European allies for opposing a US takeover of Greenland before backing off.
That larger geopolitical context was evident in recent statements made by leaders.
The trade deal will send an “meaningful political message to the world that India and the EU believe more in trade agreements than in tariffs” at a time when protectionism is on the rise and “some countries have decided to increase tariffs”, Costa said on Monday without naming the US.
Von der Leyen said that Europe and India are “committed to working together to shape a new global order”.
Von der Leyen and Costa arrived in Delhi over the weekend and were the chief guests at india’s colourful Republic Day celebrations on Monday.
On Tuesday, they will meet Modi and attend a bilateral summit, after which the deal is expected to be formally announced.
The formal signing is likely to take place only later this year, after the agreement is approved by the European Parliament and the European Council.
The deal will expand market access for Indian exports to Europe while easing entry for European investments and goods, such as cars and beverages, into Asia’s third-largest economy.
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