India and the European Union on Friday agreed to conclude a free trade deal by the end of the year, their first commitment to a deadline on talks that have been going for years, as they look to soften the effect of tariff increases from the United States.
The announcement was made by European Commission President Ursula von der Leyen, on a two-day visit to India, and Indian Prime Minister Narendra Modi at a joint press conference.
Both sides have for years been trying to strike a free trade pact, which would involve major concessions by India - one of the world's most protected markets.
Talks for an India-EU free trade deal resumed in 2021 after having been stalled for eight years.
"We have prepared a blueprint for collaboration in the areas of trade, technology, investment, innovation, green growth, security, skilling and mobility," Modi said, adding officials have been asked to conclude the deal by the end of the year.
The EU is India's largest trading partner in goods, with two-way trade growing about 90% over a decade to stand at $137.5 billion in the 2023/24 fiscal year.
Von der Leyen called for an "ambitious" trade and investment deal that could cover industries from batteries and pharmaceuticals to semiconductors, clean hydrogen and defence.
The visit by von der Leyen, accompanied by leaders of EU nations, comes at a time of rising geopolitical tension and as U.S. President Donald Trump has threatened to impose reciprocal tariffs on all nations, including the EU and India, by April.
"We both stand to lose from a world of spheres of influence and isolationism, and we both stand to gain from a world of cooperation and working together," she said, ahead of talks with Modi. "But I believe this modern version of great-power competition is also an opportunity for Europe, and India, to reimagine its partnership."
DEAL WILL NOT BE EASY
The deal had been delayed for many years by New Delhi's reluctance to lower tariffs in some areas, while the European Union proved reluctant in easing visa curbs on Indian professionals.
The EU wants India to lower tariffs of more than 100% on imported cars, whiskey and wine, while India seeks greater access for its cheaper drugs and chemicals in the EU market.
India also wants lower tariffs on its exports of textiles, garments and leather products. It also opposes an EU proposal to fix tariffs of 20% to 35% from January 2026 on high-carbon goods, including steel, aluminium and cement.
"It won't be easy to conclude the free trade talks unless India agrees to drastically cut tariffs on automobiles and other products that could hit domestic industry," said Ajay Srivastava, of Delhi think-tank Global Trade Initiative.
The United States and Israel have carried out large-scale strikes on Iranian leadership and military targets, with Iranian state media confirming t...
Follow the latest developments and global reaction after the U.S. and Israel launched “major combat operations” in Iran, prompting reta...
Ayatollah Alireza Arafi has moved into a pivotal constitutional role following the death of Supreme Leader Ayatollah Ali Khamenei, becoming the cle...
Protests broke out in Pakistan and Iraq on Sunday after Iranian state media confirmed that Supreme Leader Ayatollah Ali Khamenei had been killed in...
A number of senior Iranian figures have reportedly been killed in Saturday’s joint U.S.–Israeli airstrikes on Iran, according to Irania...
Georgia faces rising diplomatic pressure as Western partners urge alignment against Russia. Tensions grew after the UK sanctioned TV channels Imedi and POSTV, prompting Georgia to summon the British Ambassador for clarification.
The European Union has formally declared that Russia must withdraw its troops from occupied territories - including those inside Georgia - as part of the conditions for achieving lasting peace in Europe.
Following the full-scale invasion of Ukraine on 24 February 2022, Western governments significantly expanded sanctions targeting Russia’s finance, energy, trade and technology sectors. The measures built on restrictions first imposed in 2014 following Russia's illegal annexation of Crimea.
The U.S. ambassador to France, Charles Kushner, has been banned from meeting members of the French government after not showing up at the Foreign Affairs ministry, where he had been summoned over comments on the killing of a French far-right activist last week, diplomatic sources said on Monday.
Follow the latest developments and global reaction after the U.S. and Israel launched “major combat operations” in Iran, prompting retaliation from Tehran.
Governments across the region responded swiftly to Israel’s strikes on Iran, closing airspace, issuing travel advisories and activating contingency plans amid fears of escalation.
Ayatollah Alireza Arafi has moved into a pivotal constitutional role following the death of Supreme Leader Ayatollah Ali Khamenei, becoming the clerical member of Iran’s temporary leadership council under Article 111 of the Constitution of the Islamic Republic of Iran.
A senior Iranian official has warned Israel to “prepare for what is coming”, insisting that Tehran’s response to the latest escalation in the Middle East will be made openly and without limits.
Ayatollah Ali Khamenei, Iran’s supreme leader for 36 years and the country’s highest political and religious authority, has died aged 86 following joint Israeli and U.S. strikes on his compound in Tehran.
Protests broke out in Pakistan and Iraq on Sunday after Iranian state media confirmed that Supreme Leader Ayatollah Ali Khamenei had been killed in joint U.S.–Israeli strikes. At least nine people were reported dead in clashes near the U.S. consulate in Karachi.
Afghanistan said it had fired at Pakistani aircraft over Kabul after explosions and gunfire rocked the capital early on Sunday, marking a sharp escalation in fighting between the two neighbours.
A senior Iranian official has warned Israel to “prepare for what is coming”, insisting that Tehran’s response to the latest escalation in the Middle East will be made openly and without limits.
Cuba has released extensive details of a deadly midweek shootout at sea, showing rifles, pistols and nearly 13,000 rounds of ammunition that it says were carried by a group of exiles who attempted to enter the island by speedboat.
Afghanistan’s Taliban rulers said on Friday (27 February) they were ready to negotiate after Pakistan bombed their forces in several Afghan cities, including Kabul and Kandahar, and Islamabad declared the neighbours were now in "open war".
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment