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India and the EU have agreed to push for a commerce settlement this yr, European Fee president Ursula von der Leyen has stated, renewing efforts to shore up ties within the shadow of tariff threats from US President Donald Trump.
The fee chief is main a delegation of senior officers to New Delhi this week geared toward bolstering the bloc’s relations with India.
She added that the EU was “exploring a future safety and defence partnership with India” alongside the strains of pacts with Japan and South Korea, which might cowl areas together with terrorism, maritime safety, cyber safety and assaults on vital infrastructure.
Whereas years of commerce negotiations between the EU and India have failed to provide an settlement, Trump’s return to the US presidency has spurred impetus from Brussels to shut commerce offers.
In a speech on Friday, von der Leyen stated an EU-India pact could be “the biggest deal of its variety wherever on the earth” and vowed talks would transfer forward shortly.
“I’m very nicely conscious it is not going to be straightforward, however I additionally know that timing and dedication counts and that this partnership counts on the proper second,” she stated.
“This is the reason we’ve agreed with Prime Minister [Narendra] Modi to push to get it finished throughout this yr, and you’ll depend on my full dedication to ensure we are able to ship.”
Since November, the bloc has signed a long-awaited settlement with the South American Mercosur bloc, refreshed one with Mexico and reopened moribund negotiations with Malaysia.
Trump has attacked India, which has a few of the highest import duties of any main economic system, as a “tariff king” and has introduced plans to impose 25 per cent tariffs on all imports from the EU.
Von der Leyen stated the potential of an India-EU commerce settlement was “immense”.
“Europe is already India’s largest buying and selling associate,” she informed reporters. “Final yr alone we exchanged €120bn price of products and over the previous 20 years our commerce has tripled.”
“Now greater than ever the geopolitical context asks for decisive motion,” she added.
India and the EU started commerce negotiations in 2007, however the effort foundered in 2013. Talks had been dormant for nearly a decade earlier than restarting in 2022, however giant variations remained on points together with entry to the Indian marketplace for European vehicles and spirits.
India has additionally accused Brussels of over-reach in areas together with environmental practices and labour rights.
Modi’s authorities has been a troublesome commerce negotiator, together with with the UK and the European Free Commerce Affiliation, the bloc whose members embrace Switzerland, with which it signed an settlement final yr.
“The fee will likely be driving a tough discount to guarantee that we’ve an bold in addition to a commercially significant free commerce settlement that covers tariffs and non-tariff boundaries,” stated a senior EU official this week. “In fact, we’re prepared to reply to India’s requests as nicely.”
Throughout a visit by Modi to Washington this month, India and the US agreed to barter the primary tranche of a “mutually helpful, multi-sector” bilateral commerce settlement by autumn.
This got here after Trump criticised India’s “unfair, very sturdy tariffs” and threatened to levy reciprocal measures if New Delhi didn’t decrease theirs.
This week, India and the UK additionally relaunched long-running talks on a commerce deal, which started in 2022 however had been placed on maintain final yr as the 2 international locations held parliamentary elections.
