EU-India FTA 'Mother of All Deals' Nears Signing, Malta Envoy Optimistic

European Commission President Ursula von der Leyen and European Council chief Antonio Costa are scheduled to visit India for the Republic Day celebrations and the EU-India Summit.

Ahead of their visit, Gauci, in an exclusive interview with IANS, labelled the possible signing of EU-India FTA as "historical" and "mother of all deals". He recalled the delegation-level visit by the European Commission chief in February last year, emphasising that it "really pushed" the negotiations forward in relation to the EU-India FTA.

"With the Presidents here in India, it shows that India is the top priority for the EU. As EU Ambassadors met the External Affairs Minister S. Jaishankar earlier this week, we understand that the EU is also quite high on India's agenda," he said. "Once signed, the FTA will make history," he added.

The High Commissioner further mentioned that Malta, being "one of the smallest member states and an indispensable part" of the 27 EU nations, looks at the FTA as a possibility to enhance and enlarge trade with India.

"At the moment, Malta imports from India 10 times more than it exports to India. That could be understandable given that we are a small country, but we also want to address our trade deficit. We would like to be at par and that can happen through the EU-India Free Trade Agreement," Gauci added.

The EU has exclusive competence for the common commercial policy, meaning only the EU institutions can negotiate and conclude trade agreements with non-EU countries.

Citing this competence, the Maltese High Commissioner said, "So for us, when we gave that role to the EU, then we have to look up to the EU when it comes to things like this. We have been following the negotiations between the EU and the India Free Trade Agreement since they started. I am hoping that this FTA will be signed very soon, hopefully next week when the Presidents are here."

Regarding the benefits of the EU-India FTA for Malta and other member states, Gauci said, "Negotiations are very complex, because, as everyone is calling it 'Mother of all deals' since it is between two very big entities, the EU and India."

"The negotiations are also complex as they touch on a lot of different economic activities, a lot of productions, investments, and I understand that for India, the EU's investment is very important because it creates jobs, and India has the largest population on earth," he said.

Highlighting that the benefit of this agreement will be different for all the member States of the EU, the Maltese envoy said, "The FTA will also provide us a platform where we can have better trade with India on all spheres -- something which is common to all of us, irrespective of size."

"I wish that in the future, there will not be another deficit in trade and investments. Because in Malta, 114 Indian companies are operating, while at the moment, here, the Maltese investment is negligible. I hope that through this FTA, we will be able to invest more in India," he added.

Gauci said that it has become essential for the FTA between India and the EU amid the US tariff spike.

"I think it became even more important to conclude the Free Trade Agreement between India and the EU... Tariffs like anything else have to be controlled, they exist, have always existed but it's good that one can predict the amount or the percentage of tariffs, so at least when you have platforms like this FTA, the tariffs are agreed upon, hopefully lowered or removed as well... Also, this FTA will provide a sense of stability in these times of unpredictability," he said.

Lauding Prime Minister Narendra Modi's leadership, the Maltese High Commissioner said that if the FTA is signed between India and the EU, then it will be considered as another feather in his cap.

"When I came to India more than five years ago, PM Modi was already the Prime Minister. I have always been very much impressed by his leadership. He promotes an aura of calmness; he is a calm and sober leader. A leader who is sure of himself and also sure of what he is doing is for the good of his country," he said.

"One has to admire the leaders of the large countries, India being the largest population, and if you are a leader, you are a leader of the people. It is difficult, challenging and demanding to lead such a large country, and he is doing that. If this agreement is signed, it will be a feather in his cap, or I would say, another feather on his cap," Gauci added.

- IANS