A new commercial text to promote exchanges at European level? India and the European Union (EU) gave this Friday, February 28, an accelerator to their relationship on Friday, February 28, promising to conclude the free trade agreement negotiated for years by the end of 2025 and by exploring a partnership in terms of security. This desire comes as US President Donald Trump has set out transatlantic relations, in particular by directly discussing War Russia in Ukraine, and agitated the threat of a generalized increase in American customs duties.
At the end of an interview with the president of the European Commission Ursula von der Leyen, the Indian Prime Minister confirmed the desire of the two parties to lead, finally, to the signing of a trade free trade agreement. “We asked our teams to work at the conclusion of a commercial free trade agreement for both parties by the end of this year,” said the manager. The EU is the largest trading partner in India, with 124 billion euros in goods exchanges in 2023, or more than 12 % of the total Indian trade, according to Brussels.
“Work on AI, 6G, space, batteries …”
This expansion market offers key opportunities for Europe, but remains protected by high customs duties. It represents only 2.2 % of the EU goods trade. Brussels pleads in particular for the opening of the Indian market to its cars and its alcohol. For its part, New Delhi, which is struggling to create enough jobs for its population, wishes to sell more easily its textile products or drugs on European soil and requires more visas for its nationals. Relaunched in 2022, negotiations for a trade agreement have not yet succeeded. “I know that it will not be easy. But I also know that the moment and determination count and that this partnership arrives at the right time for both parties,” argued the European leader. “The modern version of the competition between major powers is an opportunity for Europe and India to reimaginate their partnership.”
In addition to trade relations, the two managers have identified digital technology – in particular artificial intelligence (AI), telecommunications and space – like another of their common priorities. “We are going to work on AI, 6g […]we will launch a dialogue on space and do common research on electric batteries, “listed the head of the Indian government.
Ursula von der Leyen has finally insisted on the necessary strengthening of the cooperation of the Old Continent and the most populated country on the planet in matters of defense and security. “For Europe, India is a pillar of certainty in an increasingly uncertain world,” argued the president of the commission. “We are working on a partnership […] With India, the type of those signed with Japan and South Korea. “
India, a historic ally of Russia
Among other sectors of cooperation, the leader has cited “terrorist” and “maritime” threats, “cyber attacks” or “the attacks that aim for our essential infrastructures”. India and Europe “share the same views of peace, security, stability and prosperity” in the Asia-Pacific region, said Narendra Modi. In terms of military industry, Ursula von der Leyen has cited sectors where India and Europe share “technology and know-how, such as cybersecurity, space or drones”.
Even if it recently opened its arsenal to weapons made to the west, India remains an historic ally of Russia, which still provides it with most of its equipment. The country has thus largely resisted the pressures of Europe to move away from Moscow after the invasion of Ukraine. The two partners were to mention this file, but neither Narendra Modi nor Ursula von der Leyen made it of them during their declaration. A sign of the importance she gave to her stay in India, the European leader was accompanied by almost all of her 26 commissioners.