European Union Very Close to Finalising FTA with India: EU President

The European Union (EU) and India are very close to finalising a free trade agreement, even as some steps remain pending, the president of the European Commission, Ursula von der Leyen, said on Tuesday during her address at the World Economic Forum in Davos.

Speaking about the EU’s efforts to diversify its trade partnerships, von der Leyen said, “There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of two billion people, accounting for almost a quarter of global GDP.”

She also linked the deal to the upcoming high-level engagement and said that she will be travelling to India next weekend after the World Economic Forum ends. The trip will be a part of the ongoing efforts to take forward major trade agreements, and there is crucial work to be concluded to strengthen the economic ties and cooperation between Europe and India, she added.

The European Commission president said that the continent is committed to engaging in trade with partners across the world, stressing that the EU will continue to pursue engagement, as she placed the proposed deal with India within the wider global reach of Europe. Highlighting Europe’s desire to expand international trade and cooperation, she said, “Europe will always choose the world, and the world is ready to choose Europe.”

She further said that Europe’s focus is to create a stable and well-regulated environment supportive of investment, boosting trade and enabling sustainable economic growth, von der Leyen said as she explained the policy direction behind the outreach.

She also stressed energy as a key pillar of Europe’s growth strategy alongside trade and investment priorities, saying Europe’s aim is to build an energy union ensuring homegrown, reliable and cheap energy to boost economic growth. The continent needs an “urgent mindset” to address the energy challenges and secure a sustainable future, she added.

Europe has achieved more in defence in the past year than in decades before, as member states stepped up investments to record levels, von der Leyen said as she spoke on the broader strategic priorities beyond the economy. Three leading European defence technology startups have reached unicorn status, which shows Europe’s growing innovation and strength in the defence sector, the leader also mentioned.

India Visit

Notably, von der Leyen and the president of the European Council, Antonio Luis Santos da Costa, are the chief guests for the 77th Republic Day and will attend the celebrations at Kartavya Path on January 26. The two European Union leaders will be on a three-day state visit to India from January 25 at the invitation of Prime Minister Narendra Modi.

They will also co-chair the 16th India-EU Summit on January 27 and will meet President Droupadi Murmu to hold restricted and delegation-level talks with PM Modi.

Meanwhile, on the sidelines of the India-EU Summit, an India-EU Business Forum is also likely to be held. The Ministry of External Affairs (MEA) said that both India and the European Union have been strategic partners since 2004, recalling the 15th India-EU Summit that was held virtually on July 15, 2020.

The MEA also mentioned that over the years, the bilateral engagement has deepened in a wide range of areas, especially after the historic visit of the EU College of Commissioners to India last year.

The participation of the EU leaders as chief guests at the 77th Republic Day celebrations and their involvement at the 16th India-EU Summit will further strengthen the India-EU Strategic Partnership and advance collaboration in areas of mutual interest, according to the MEA.

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