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Key Points

The EU's ambassador to India is really pushing for both sides to finalize their free trade agreement by the end of this year. He specifically mentioned how this deal would help counter recent tariff increases by other countries, clearly referring to the United States. Beyond just trade, they're also working on an investment protection agreement to make business between Europe and India more predictable. With current trade already at 180 billion euros, both economies see massive potential for growth through this partnership.

Key Points: EU Envoy Urges India FTA Deal Amid US Tariff Hikes

  • EU and India target FTA completion by end of 2024 to strengthen economic ties
  • Bilateral trade reaches 180 billion euros with EU as India's top partner
  • Investment Protection Agreement aims to secure foreign direct investment flows
  • New Strategic Agenda includes innovation hubs and semiconductor supply chains
  • FTA seen as hedge against market uncertainties and US tariff increases
3 min read

India, EU must seal FTA to boost trade and investment ties amid US tariff hike: EU envoy

EU Ambassador Herve Delphin pushes for India-EU free trade agreement completion by year-end to counter US tariff increases and boost $180 billion trade partnership.

"While some countries are raising tariffs or otherwise closing their markets, we should use the FTA to diversify trade - Herve Delphin"

New Delhi, Oct 4

European Union’s Ambassador to India, Herve Delphin, said on Saturday that India and the EU should use the free trade agreement (FTA) to increase bilateral trade and investment at a time when “some countries” are raising tariffs or otherwise closing their markets, in an oblique reference to the US.

Addressing the second annual general meeting of the Federation of European Business in India (FEBI) here, the Ambassador said, “The FTA can open new opportunities for EU and Indian businesses and create conditions to significantly increase our bilateral trade and investment. While some countries are raising tariffs or otherwise closing their markets, we should use the FTA to diversify trade, hedge against uncertainties and strengthen our supply chains.”

He highlighted that EU President Ursula von der Leyen and PM Modi set the objective to conclude the FTA by the end of this year. The negotiating teams are working hard to deliver it but it’s fair to say the negotiations are challenging and important issues remain to be solved, he added.

“The EU was and is still ready to conclude on a meaningful package. We look forward to the next round and further negotiations towards a mutually beneficial deal,” Delphin said.

He further stated that alongside the FTA, the EU and India are negotiating an Investment Protection Agreement. The agreement aims to create a predictable, secure and transparent environment for EU and Indian investors, thus helping to generate the higher levels of FDI needed for the Indian economy.

“The cases for the FTA and for an Investment Protection Agreement are stronger than ever. Our economies are complementary and offer each other scale,” he observed.

The ambassador further stated that while the FTA and Investment Agreements can be the game changer, there is more in the EU-India economic relations. The Joint Communication released by the European Commission and the High Representative Kaja Kallas two weeks ago, is a policy document which sets out our vision for the EU-India relations and our policy offer for India, namely on a new EU-India Strategic Agenda.

Among the five pillars, most of them connect to the economy and business, he pointed out.

He said that each of these pillars contains numerous proposals and initiatives for joint action that could deliver tangible results. Such as innovation hubs to mobilise start-ups and facilitate their market uptake; Blue Valleys as dedicated ‘conducive’ platforms for private sector engagement in selected value chains.

Besides, a 'TTC 0.2' zooming in on critical supply chains like semi-conductors; active pharma ingredients; clean tech and biotech and a gateway office to facilitate mobility of skilled workers in the ICT sector are also included in the proposals, he noted.

Delphin further highlighted that the EU is India’s top trading partner, with bilateral trade in goods of 120 billion euros, ahead of the US and China. Adding services, our bilateral trade has reached 180 billion euros.

"This is an impressive figure, but there is a huge potential for growth considering that the EU and India are the 2nd and the 4th largest economies in the world. To unlock this untapped potential EU and India are negotiating the FTA," he added.

- IANS

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Reader Comments

R
Rohit P
While I support the FTA in principle, I hope our negotiators are ensuring fair terms for Indian farmers and small businesses. We've seen in past agreements how local industries can suffer. Need to protect our economic interests while opening up.
A
Aditya G
The focus on semiconductors and clean tech is brilliant! This aligns perfectly with Make in India and our push for self-reliance in critical sectors. Hope we can conclude this by year-end as planned.
S
Sarah B
As someone working in IT, the gateway office for skilled worker mobility sounds promising. This could really help Indian tech professionals access European markets more easily. Good strategic move!
K
Karthik V
180 billion euros trade is impressive but imagine what we could achieve with smoother trade terms! This FTA could be a game-changer for Indian manufacturing and exports. Let's hope both sides find common ground soon.
M
Meera T
The investment protection agreement is crucial for attracting more European companies to set up manufacturing here. This could boost our 'Make in India' initiative significantly. Good timing with the global supply chain shifts happening.

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