The European Union is set to press India to cut its high tariffs on key products such as cars and wine in an effort to boost bilateral trade, reduce reliance on China, and pave the way for a comprehensive free trade agreement, according to a senior EU official.
Speaking on condition of anonymity, the official said the EU will urge India to lower tariffs on goods that are commercially important to European industries, while offering flexibility on agricultural issues to facilitate negotiations. “The Indian market is relatively closed, especially to key products of commercial interest to the European Union and our member states’ industries, including cars, wines and spirits,” the official said.
This announcement comes ahead of European Commission President Ursula von der Leyen’s two-day visit to New Delhi, during which she is scheduled to meet with Indian Prime Minister Narendra Modi on Friday and trade minister Piyush Goyal subsequently. The discussions are set against a backdrop of escalating geopolitical tensions, as both Brussels and New Delhi seek to deepen their strategic partnership, enhance economic and security cooperation, and diversify supply chains to reduce dependency on China.
The push for tariff reductions aligns with broader trade policy shifts. It echoes U.S. President Donald Trump’s recent threat of reciprocal tariffs on goods from countries imposing digital service taxes on U.S. tech firms, a move that has raised concerns among Indian exporters. Analysts from Citi Research estimate that new reciprocal tariffs could cost India around $7 billion annually.
The EU, which is India’s largest trading partner in goods with trade nearing $126 billion in 2024—an increase of roughly 90% over the past decade—views India as a vital ally in its “de-risking” strategy. This strategy aims not only to strengthen economic and security ties but also to reduce the EU’s reliance on Chinese products.
Beyond trade, the visit is expected to cover security cooperation. The EU is keen to secure India’s support for a “peaceful and just deal” to bolster Ukraine’s security, and discussions may include sharing classified security information to address common threats such as cyber attacks and terrorism.
However, some analysts caution that tangible outcomes may be challenging to achieve. Ajay Srivastava, founder of the Delhi-based Global Trade Initiative and India’s former negotiator in EU trade talks, emphasized the importance of recognizing India as a data-secure partner. “While both parties have concerns about China, neither sees it as a top priority,” Srivastava said, noting that India is more focused on border tensions with China, whereas the EU is primarily preoccupied with the Ukraine-Russia conflict and NATO matters.
As the next round of trade negotiations is scheduled for March 10-14 in Brussels, all eyes will be on how these high-stakes discussions shape the future of EU-India trade and broader efforts to recalibrate global supply chains amid shifting geopolitical dynamics.
China has urged the EU to join forces in resisting U.S. protectionism and safeguarding global trade, as Vice Premier He Lifeng met EU trade chief Maros Sefcovic in Beijing. While both sides seek stronger ties, the EU stresses the need to rebalance trade relations amid ongoing market access concerns.
The European Commission has called for enhanced preparedness across Europe, urging improved stockpiling of critical supplies and encouraging citizens to maintain emergency provisions for at least 72 hours.
The European Union’s enlargement process continues to move forward, but without mention of Georgia. In a speech at the European Policy Center in Brussels on March 25, European Council President Antonio Costa highlighted the EU’s commitment to integrating Ukraine, Moldova, and the Western Balkans.
The European Union's antitrust regulators are poised to close their year-long investigation into Apple's browser options on iPhones, according to sources familiar with the matter.
Nepal's government investigates violence during a rally by former king's supporters, resulting in two deaths and over 100 injuries. The protest in Kathmandu led to vandalism and clashes with security forces.
The "Colonialism: Erasure of Religious and National Identity" conference in Baku gathers leaders of independence movements and political prisoners' families to discuss the suppression of identity under colonial rule, global anti-colonial movements, and reparations.
Airbus UK wins a £150 million-contract to engineer landing platform that will safely deliver the first European rover on Mars. First British-built rover will explore the red planet in 2030 for signs of present and past life on Mars.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,002 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
The International Monetary Fund (IMF) Executive Board has completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about $0.4 billion, which will be allocated for budget support.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
As the world shifts toward clean energy at an ever-accelerating pace, large economies are scrambling to secure reliable supply chains for rare earth minerals. These minerals, once seen as mere industrial components, have become a political tool in the global power struggle
Russian forces carried out a drone attack on Ukraine’s second-largest city, Kharkiv, late Wednesday, injuring at least twenty one people and causing structural damage, according to Ukrainian officials.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,002 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
Nepal's government investigates violence during a rally by former king's supporters, resulting in two deaths and over 100 injuries. The protest in Kathmandu led to vandalism and clashes with security forces.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,002 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
Wisconsin Attorney General Josh Kaul has filed a lawsuit to stop Elon Musk from giving $2 million to voters ahead of the state’s Supreme Court election, calling it a violation of state election laws.
Severe storms have brought deadly floods to the Texas–Mexico border, killing at least four people and forcing hundreds into shelters.
M23 rebel leaders have arrived in Qatar for further talks with mediators, following an earlier meeting between the presidents of DRC and Rwanda.
Nepal's government investigates violence during a rally by former king's supporters, resulting in two deaths and over 100 injuries. The protest in Kathmandu led to vandalism and clashes with security forces.
The "Colonialism: Erasure of Religious and National Identity" conference in Baku gathers leaders of independence movements and political prisoners' families to discuss the suppression of identity under colonial rule, global anti-colonial movements, and reparations.
Airbus UK wins a £150 million-contract to engineer landing platform that will safely deliver the first European rover on Mars. First British-built rover will explore the red planet in 2030 for signs of present and past life on Mars.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,002 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
The International Monetary Fund (IMF) Executive Board has completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about $0.4 billion, which will be allocated for budget support.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment