EU-India FTA Called "Mother of All Deals" by Lithuanian Envoy

Speaking to IANS in an exclusive interview Diana Mickeviciene expressed strong enthusiasm on behalf of Lithuania and the wider EU. She said the agreement goes far beyond a conventional trade arrangement.

"This is an agreement between the two largest trading blocs in the world and between two democracies," she noted, adding that it offers a blueprint for how democratic nations can shape trade relations in an increasingly uncertain global environment.

According to Diana Mickeviciene, the greatest excitement surrounding the FTA lies in the vast opportunities it will unlock for businesses on both sides. She underlined that India is already playing a meaningful role in global supply chain diversification, but the agreement could significantly amplify that role.

With the EU being a major pillar of global supply chains, closer economic integration with India is strategically important, she said, particularly as India continues to expand its network of FTAs.

Calling the EU-India FTA unprecedented in terms of both size and openness, Diana Mickeviciene said India has "come a long way" in its trade engagement, and the future of EU-India economic ties looks highly promising.

Highlighting the benefits for Lithuania, she pointed out that despite being a smaller economy, the country has experienced strong growth over the past two decades by being part of the EU's common economic area and free trade framework. Partnering with a major economy like India, she said, would further enhance these gains.

Currently, bilateral trade between Lithuania and India stands at around €400 million annually when goods and services are combined, a figure the ambassador said is well below its true potential. These sectors fall squarely within the scope of the proposed FTA. Lithuanian authorities plan to actively inform businesses about reduced tariffs, simplified procedures and improved market access once the agreement is in place.

She also highlighted Lithuania's strong purchasing power, with per capita income ranging between €29,000 and €30,000, and said Lithuanian consumers are keen to access a wider range of high-quality Indian goods.

Diana Mickeviciene emphasised that one of the most historic aspects of the agreement is the unprecedented level of mutual market access it offers. "This degree of openness is unique for both the EU and India," she said.

Against the backdrop of rising global trade tensions and tariff measures by the United States, the Ambassador described the EU-India FTA as a strong and credible alternative. Despite accounting for nearly one-third of global trade, current trade volumes between the EU and India remain underdeveloped.

The agreement, she said, has the potential to dramatically change this, with EU forecasts suggesting that trade in goods and services could double within six years. Similar expectations exist on the Indian side. This is an extremely positive signal for global trade.

On implementation of FTA, Diana Mickeviciene said she does not foresee major challenges, citing unprecedented political will on both sides. While procedural steps remain, she described these as a normal part of the process. She also pointed to extensive technical cooperation, including customs coordination and institutional collaboration, as an opportunity to strengthen interoperability between EU and Indian institutions.

Reiterating the growth potential of Lithuania-India trade, the Ambassador said both countries already exchange goods and services covered by the FTA framework. Enhanced market access is expected to boost Lithuanian exports, while Indian goods and services - particularly those in high demand in Lithuania - are likely to find new opportunities, provided they meet quality and competitiveness standards.

- IANS