EU, India on Brink of Historic Trade Deal: Von der Leyen
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European Commission President Ursula von der Leyen has announced that the European Union and India are on the verge of a monumental trade agreement. Dubbed the 'mother of all deals,' this partnership would create a massive market of 2 billion people, accounting for nearly a quarter of global GDP. The deal is expected to be finalized during a summit in New Delhi, where von der Leyen and European Council President Antonio Costa will meet with Prime Minister Narendra Modi on January 25-27. The proposed India-EU free trade agreement would give the 27-member EU bloc a significant advantage in the rapidly growing Indo-Pacific region. Currently, the EU is India's largest trading partner, with trade in goods worth $135 billion in 2023-24. The agreement would not only boost trade between India and EU member states but also provide a first-mover advantage for Europe in the region. Von der Leyen emphasized that the EU wants to establish business relationships with growth centers and economic powerhouses, including Latin America and the Indo-Pacific. She highlighted the need for Europe to build a new form of independence in the face of geopolitical shocks, citing the US's efforts to take control of Greenland as an example. The EU and India have been negotiating the trade deal since 2022, and recent months have seen a surge in talks driven by geo-economic uncertainty. Besides the trade agreement, the two sides are expected to finalize a Security and Defence Partnership and an agreement to facilitate the mobility of Indian workers and professionals. Von der Leyen used her address at the World Economic Forum in Davos to stress the importance of Europe adopting an 'urgency mindset' to capitalize on the changing global landscape. She noted that the EU has made significant progress in addressing challenges such as energy, raw materials, defence, and digital, but recognizes that the seismic change underway is permanent and requires a new approach.
