India and the European Union endeavor to conclude their bilateral free trade agreement (ALE) at the end of 2025, said Prime Minister Narendra Modi (February 28, 2025) said on Friday, February 28, 2025) after meeting the chairman of the Urs Ursula Von Der Leyen commission in Delhi. They also discuss a new strategic security and defense partnership agreement, to replace the current strategic roadmap for 2020-2025, before the next EU-India summit scheduled later this year.
Ms. von der Leyen was in Delhi to direct the college of commissioners, the largest visit of this type of the EU cabinet so far. The two parties held more than 20 meetings between various ministries.
“We have prepared a plan for collaboration in the fields of trade, technology, investment, innovation, green growth, security, skills and mobility. We have ordered our teams to conclude a mutually beneficial bilateral free trade agreement by the end of this year, “Modi announced Friday, February 28, 2025).
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‘POLITIC POLITICS’
Progress in the Ale talks – which started first in 2007 and were relaunched in 2022 – has escaped the two teams of negotiators so far. The new directive to complete the negotiations by the end of the year aims to give them a “political push” before the next series of talks to be held from March 10 to 14 in Brussels.
If it is concluded, the agreement, which includes an investment protection agreement and an agreement of geographic indications, would be the “greatest world,” said Von Der Leyen. However, questions remain as to whether the two parties can fill their differences in a few months, in particular on the tariff issues that have maintained them for years.
Key to fta car rates
Information of the media on talks, an EU official said that the AFT plan was ambitious, but conceded that there is a breakthrough on India which cuts the prices on European cars and alcohol, it would not be achieved. “I would even go so far as to say that without a substantial commitment to cars, there will be no trade agreement between Europe and India,” said the manager.
Asked about the declaration, the secretary of the Ministry of External Affairs (MEA) (West), Tanmay Lal, said that there were different concerns for both parties. “But now, the decisive and clear mandate has been given by the leaders to their teams,” he added, when it was asked how realistic the end of year deadline. India has accelerated trade negotiations with a number of countries in recent years, but the ALF have missed such deadlines several times, including those with the United Kingdom, Australia and others.
Change the geopolitical context
The division of problems discussed in different baskets of economic problems, technological cooperation, security and defense, Ms. von der Leyen has said that “now more than ever, the geopolitical context requires decisive action”. It was thought that it indicates the “context” of the threats of the commercial prices of the American president Donald Trump against Europe as well as the “tariff offenders” such as India, the movements of the American policy on the conflict of Russia-Ukraine and the desire of Europe to “deactivate” its links with China.
“We have seen how supply chains and outbuildings are used to obtain an influence or cause wedges between nations and regions. We have seen a more aggressive posture of the great powers, and of course, the conflicts that have destabilized entire regions, “she said, delivering an opening discourse on EU-India links during an event organized by the Strategic and Defense Research Council. “Links in India have the potential to be one of the decisive partnerships of this century and relations with India will be the cornerstone of European foreign policy. It is therefore time to pass these links at the next level, ”added Ms. von der Leyen.
Visible strain in links
The size of the European Union delegation – with 21 commissioners, this is the largest visit of this type in a single country – and the declarations indicate a new momentum to the links between India and its largest trading partner, the EU in 30 countries. Their relationship has obviously reported in recent years, in particular since the Russian invasion of Ukraine in February 2022.
There has been no annual EU-India summit since 2020, the Commercial and Technological Council (TTC) only met the second time Thursday, February 27, 2025), and there was visible pressure on the coherent push of the EU so that India does not go from its unlined position and abstentions in the United States. The EU has also pushed India without success to reduce its imports of oil from Russia, which has in fact cultivated multiple since 2022. However, the recent return to the United States foreign policy under Mr. Trump, including its decision to vote with Russia against the resolution on other partnerships in Ukraine.
‘No mention of sanctions’
MEA officials informed the media said that there were “no discussion on sanctions” against Russia at the Von Der Leyen-Modi meeting. This comes a few days after the EU announced its 16th cycle of sanctions against Russia, appointing an Indian company among those who were raped the sanctions against Russian oil exports and military assistance.
The EU official said that there had been “wider” discussions on the Ukrainian conflict and on “EU’s very strong commitment to a safe future for Ukraine and the continuous sanctions that we continue to apply to Russia”.
The conflict, as well as American efforts to negotiate a mineral agreement with Ukraine and a ceasefire in Russia-Ukraine, however hung over Delhi meetings. In fact, the vice-president of the European Commission / Kaja Kalla, who was to chair the TTC, Kaja Kalla, who was to chair the TTC meeting on February 27, 2025), left Brussels for Washington in order to meet her American counterpart Marco Rubio, instead of flying for Delhi.
(with Kallol Bhattacherjee entries)
Published – February 28, 2025 01:41 PM IST
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