India and EU accelerate Free Trade Agreement negotiations

INDIA and the European Union will this week revisit their negotiations for an ambitious free trade deal as European Commission president Ursula von der Leyen pays a two-day visit from Thursday (27) to hold talks with prime minister Narendra Modi.

Accompanied by the European Union College of Commissioners, Von der Leyen will also discuss Ukraine, a senior EU official said.

“India is indeed a very important partner for the EU, including for its outlook on China,” the official said, adding Von der Leyen may brief Modi on her recent visit to Kyiv.

“Our side is expected to inform New Delhi of the importance of Ukraine’s security for our own,” he added.

Sanctions against Russia are also said to be on the agenda. The visit by the EU delegates will aim at finalising the broad contours of a new strategic agenda that is expected to be unveiled at the next India-EU summit, scheduled for the latter half of 2025 in India.

India and the EU are currently negotiating a free trade agreement, an investment protection pact and a geographical indications agreement.

A senior EU official said the EU is looking at an “ambitious” as well as a “commercially meaningful” free trade agreement that addresses tariffs and non-tariff barriers.

There have been issues between the two sides over tariffs for wine and agricultural products, the official indicated. India and the EU are also set to explore ways to expand cooperation in defence and security as well as new technology, the official added.

India and the EU relaunched the negotiations for the trade pact in June 2022.

Both sides first launched the negotiations for the free trade pact in 2007, before the talks were suspended in 2013 due to a gap in ambition.

During the visit by the EU leaders, a meeting will also review cooperation under the India-EU Trade and Technology Council (TTC), launched in February 2023.

It facilitates the exchange of critical technologies relating to artificial intelligence, quantum computing, semiconductors and cybersecurity.

It will be Leyen’s third visit to India. She previously visited India for a bilateral trip in April 2022, and to attend the G20 Leaders’ Summit in September 2023.