India EU Trade Deal: Amid global uncertainties, the European Union is eyeing to build a comprehensive global agenda with India. Also, both sides can finalize a free trade agreement, defense framework agreement and a strategic agenda in their annual summit on January 27.

Top diplomatic sources told PTI that the free trade agreement at the summit in New Delhi will be a ‘living document’ on which work can continue to resolve any outstanding issues.

Statement from EU official

A senior EU official said, “In the absence of America, India and the EU, along with France, can set the agenda for global governance.” India is one of the big countries with which we work and on which we can trust.

At a time when the world is facing barriers to trade due to America’s tariff policy, the proposed India-EU Free Trade Agreement is expected to further deepen relations between the two sides.

Its positive impact will be felt in many other areas also. It is understood that both sides have already resolved issues related to agricultural market access and liquor. Even in the matter of sections related to the rules of origin, progress is being made.

The agreement may be sealed by December

“The global environment is more volatile and hostile and India and the EU want to build trust and integrate supply chains,” a source said. Both sides have already completed 12 chapters of the free trade agreement and now both New Delhi and Brussels are moving forward with talks on an almost daily basis to complete the remaining eight points.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had committed in September that they would finalize the trade agreement by December. The European Union is India’s largest trading partner. Bilateral merchandise trade between the two sides stood at US $ 135 billion in the financial year 2023-24.

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India EU Trade Deal: At a time when India is in talks with the US and European Union regarding a trade agreement and it is expected to be signed soon, Union Commerce Minister Piyush Goyal said that the government is not in any hurry in this deal. According to Reuters, during the Berlin Global Dialogue, Goyal said that if any attempt is made by any trading partner country to impose any condition which hinders India’s trade options, it will be rejected.

Strong message from Piyush Goyal

It is noteworthy that talks on Free Trade Agreement are going on continuously between India and the European Union, but no consensus has been reached yet on market access and other issues. This conversation has been going on for a long time.

This strong message from Piyush Goyal has come at a time when Trump administration and the European Union are putting pressure on India to purchase cheap crude oil from Russia. America has imposed a high tariff of 50 percent on India, which includes an additional tariff of 25 percent due to the purchase of crude oil from Russia.

Attempt to put pressure on India

Western countries allege that India is indirectly helping in the fight against Ukraine by purchasing cheap oil from Russia. US President Donald Trump has claimed that Prime Minister Modi has committed to him that the purchase of crude oil from Russia will be reduced. However, the Government of India has not issued an official statement in this regard.

On the other hand, President Trump has imposed sanctions against Russia’s two major oil companies, Rosneft and Lukoil. As a result, India and China may be forced to reduce the purchase of oil from Russia.

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