EU, India move closer to “mother of all” trade deals

The European Union is anticipating the conclusion of a major and wide-ranging agreement with India, which is expected to be finalised during an upcoming visit to India by the President of the European Commission and the President of the European Council.

Speaking in the European Parliament, the EU’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas, said Europe is ready to advance a strong new agenda with India, as per foreign media.

She announced that the EU has agreed to move ahead with the signing of a new Security and Defence Partnership, which would broaden cooperation in areas including maritime security, counterterrorism and cyber defence. Kallas said she expects the agreement to be signed at the EU-India Summit scheduled for next week in New Delhi.

India and the European Union are set to hold their 16th summit in New Delhi, where the adoption of a new comprehensive strategic agenda for EU-India relations is also expected.

Earlier, European Commission President Ursula von der Leyen said the EU is close to finalising a Free Trade Agreement with India, describing it as what some have called “the mother of all deals.” Speaking at the World Economic Forum in Davos, she underlined Europe’s determination to expand trade ties and international cooperation. She highlighted the scale of the proposed agreement, noting that it could create a market of two billion people and represent nearly a quarter of global gross domestic product.

Von der Leyen said that while further work remains, both sides are on the verge of a historic trade accord. She also confirmed that she will travel to India next weekend to push forward discussions on the proposed deal and to strengthen broader economic relations. Placing the India agreement within the EU’s wider global trade strategy, she stressed that the bloc remains open to doing business with partners around the world.

European Council President Antonio Luís Santos da Costa and European Commission President Ursula von der Leyen will make a three-day state visit to India from January 25 to 27, during which they will serve as chief guests at India’s 77th Republic Day celebrations. As part of the visit, the two leaders will co-chair the 16th India-EU Summit on January 27.

During their stay, they are scheduled to meet Indian President Droupadi Murmu and to hold both restricted and delegation-level talks with Prime Minister Narendra Modi. An India-EU Business Forum is also expected to take place on the sidelines of the summit.

India and the European Union have been strategic partners since 2004, with their most recent summit held virtually on July 15, 2020. The participation of EU leaders as chief guests at the Republic Day celebrations, alongside the convening of the 16th India-EU Summit, is expected to further deepen the strategic partnership and strengthen cooperation in key areas of mutual interest.

The visit by President da Costa and President von der Leyen is taking place at the invitation of Prime Minister Modi and comes at a time when negotiations on the India-EU Free Trade Agreement have reached an advanced stage, with completion of the deal expected during the visit.

By Tamilla Hasanova