The European Union (EU) is seeking more robust commitments from India regarding the reduction of high import tariffs on cars, wines, and spirits. This request comes as part of the ongoing negotiations for a free-trade agreement (FTA), highlighted by a senior EU official on Tuesday. These discussions are set to precede a crucial meeting between Prime Minister Narendra Modi and European Commission President Ursula von der Leyen later this week.
The focus on the long-awaited FTA and an accompanying investment pact aims to demonstrate a broader political commitment from both leaders. This commitment is expected to pave the way for the 10th round of negotiations, scheduled to take place in Brussels from March 10-14, following a six-month break.
President von der Leyen’s visit to New Delhi on February 27-28 marks the first such visit to India, accompanied by EU commissioners from 21 countries. This visit underscores the trade bloc’s intent to cultivate a “new strategic agenda” with India. The discussions will serve as a foundation for the anticipated India-EU summit in the latter half of the year.
The timing of this meeting is particularly significant in light of the escalating trade war and reciprocal tariff threats from US President Donald Trump. The EU perceives India as a potential “alternative provider” of essential goods, aligning with its strategy to diversify and mitigate risks associated with China.
In addition to the trade agreement, the EU plans to address concerns regarding the “effectiveness and enforcement” of its sanctions against Russia. This multifaceted dialogue reflects the EU’s broader geopolitical and economic strategies amidst global trade tensions.