India EU Trade Deal: Amid global uncertainties, the European Union is eyeing to build a comprehensive global agenda with India. Also, both sides can finalize a free trade agreement, defense framework agreement and a strategic agenda in their annual summit on January 27.
Top diplomatic sources told PTI that the free trade agreement at the summit in New Delhi will be a ‘living document’ on which work can continue to resolve any outstanding issues.
Statement from EU official
A senior EU official said, “In the absence of America, India and the EU, along with France, can set the agenda for global governance.” India is one of the big countries with which we work and on which we can trust.
At a time when the world is facing barriers to trade due to America’s tariff policy, the proposed India-EU Free Trade Agreement is expected to further deepen relations between the two sides.
Its positive impact will be felt in many other areas also. It is understood that both sides have already resolved issues related to agricultural market access and liquor. Even in the matter of sections related to the rules of origin, progress is being made.
The agreement may be sealed by December
“The global environment is more volatile and hostile and India and the EU want to build trust and integrate supply chains,” a source said. Both sides have already completed 12 chapters of the free trade agreement and now both New Delhi and Brussels are moving forward with talks on an almost daily basis to complete the remaining eight points.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had committed in September that they would finalize the trade agreement by December. The European Union is India’s largest trading partner. Bilateral merchandise trade between the two sides stood at US $ 135 billion in the financial year 2023-24.
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