India and the European Union are on the cusp of a “historic commerce settlement” that may create a market comprising 2 billion individuals, European Fee President Ursula von der Leyen mentioned on Tuesday, simply days earlier than her journey to Delhi, in an handle on the World Financial Discussion board in Davos. This market would thus account for nearly 1 / 4 of the worldwide GDP, she added.
“I’ll journey to India. There may be nonetheless work to do. However we’re on the cusp of a historic commerce settlement. Some name it the mom of all offers,” she mentioned.
Her underlining of the size of the deal comes at a time when US President Donald Trump has been utilizing tariffs towards India and European international locations to pressure them into positions that he prefers.
“It’s time to seize this chance and construct a brand new impartial Europe,” mentioned von der Leyen, mentioning present “geopolitical shocks” and the way the 27-nation bloc is responding.
President of the European Council Antonio Costa and von der Leyen will likely be in India from January 25 to 27 as Republic Day chief company, and maintain summit talks with Prime Minister Narendra Modi.
The 2 sides are set to announce the conclusion of negotiations on the much-awaited Free Commerce Settlement on the India-EU summit on January 27.
“And, crucially, that would offer a first-mover benefit for Europe with one of many world’s quickest rising and most dynamic continents,” von der Leyen mentioned, explaining that Europe desires to do enterprise with the expansion centres of at this time and the financial powerhouses of this century.
“From Latin America to the Indo Pacific and much past, Europe will at all times select the world. And the world is prepared to decide on Europe,” she mentioned in her televised handle.
What FTA means for India, EU
- The European Union is already India’s largest commerce companion with bilateral commerce in items recording $135 billion within the monetary yr 2023-24.
- The Free Commerce Settlement is predicted to considerably improve these ties. The EU and India had first launched negotiations for the free commerce settlement in 2007, earlier than the talks have been suspended in 2013 resulting from a spot in ambition. The negotiations. The negotiations have been relaunched in June 2022.
- The bold FTA is being firmed up at a time amid rising considerations over Trump-ruled Washington’s commerce and tariff insurance policies which have impacted each India and the 27-nation EU. “The world could also be very totally different at this time, with none query. However I consider the lesson could be very a lot the identical. That geopolitical shocks can — and should — function a possibility for Europe,” Ursula von der Leyen mentioned.
Defence pact on agenda too
In addition to the FTA, the 2 sides are prone to unveil a defence framework pact and a strategic agenda on the January 25-27 summit. India and the European Union have been strategic companions since 2004.
The joint complete strategic imaginative and prescient that can govern their relationship for the interval 2026-2030.
In her handle, von der Leyen additionally touched upon geopolitical challenges over, for example, Greenland. “In my opinion, the seismic change we’re going by way of at this time is a chance, in reality, a necessity to construct a brand new type of European independence. This want is neither new nor a response to current occasions,” she mentioned.
“We are going to solely be capable of capitalise on this chance if we recognise that this alteration is everlasting,” she mentioned.
What she mentioned on US ties
On the EU’s ties with the US, von der Leyen mentioned Europe considers American individuals not simply “our allies, however our associates”.
“And plunging us right into a harmful downward spiral would solely assist the very adversaries we’re each so dedicated to preserving out of the strategic panorama,” she mentioned.
“However past this, we now have to be strategic about how we method this challenge,” mentioned the highest EU chief, referring to the Russia-Ukraine battle.
“In simply over a month, we’ll mark the fourth anniversary of Russia’s battle of aggression towards Ukraine. 4 years on, Russia reveals no signal of abating. No signal of regret. No signal of looking for peace,” she mentioned.
“This should finish. All of us need peace for Ukraine. We recognise President Trump’s position in pushing the peace course of ahead, and we’ll work intently with america. All of us agree that Ukraine should due to this fact be ready of power to go to the negotiation desk,” she mentioned.
(with PTI inputs)
