NEW DELHI, Feb 28: On Friday, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reached an agreement to finalize a long-anticipated free trade agreement by the end of this year, while also enhancing technology and defense collaboration. This initiative arises amidst geopolitical challenges and escalating concerns regarding the tariff policies of US President Donald Trump.
During their discussions, the leaders chose to advance bilateral defense cooperation, particularly in the Indo-Pacific region, with Von der Leyen announcing the EU’s intent to establish a security and defense pact with India, similar to its existing partnerships with Japan and South Korea.
The target for concluding the trade deal, which would be the most substantial of its kind worldwide, comes over 17 years after the initial negotiations commenced. Talks for the agreement resumed in June 2022 after being halted in 2013.
The visit of the EU Commission chief to India, accompanied by members of the College of Commissioners and senior political leaders from EU member states, followed closely after Trump issued a threat of 25 percent tariffs on the bloc.
According to a senior EU official, alongside the Free Trade Agreement (FTA), both parties are also working towards finalizing discussions on an Investment Protection agreement as well as a pact on Geographical Indications (GIs).
In his statement to the media, Modi mentioned that several decisions were made to “elevate and accelerate” the India-EU partnership, noting nearly 20 ministerial meetings across various sectors occurred in the past two days.
“This two-decade-long strategic partnership between India and the EU is organic and natural. Its foundation is built on trust, shared democratic values, and a mutual commitment to prosperity and collective progress,” he stated.
The Prime Minister shared that an ambitious roadmap has been crafted for the India-EU partnership beyond 2025.
“It will be unveiled at the next India-EU summit,” he added.
“We have laid out a collaborative framework in realms such as trade, technology, investment, innovation, green growth, security, skill development, and mobility,” he further elaborated.
“We have instructed our teams to finalize a mutually advantageous bilateral free trade agreement by year-end,” Modi concluded.
He also mentioned discussions regarding strengthening the investment framework, including advancing the Investment Protection and GI agreements. (AGENCIES)
