NEW DELHI, Feb 28: Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on Friday agreed to seal a much-awaited free trade deal by this year and boost technology and defence cooperation — a move that came amid geopolitical headwinds and rising concerns over US President Donald Trump’s policy on tariffs.
In their talks, both the leaders also decided to expand two-way defence cooperation, especially in the Indo-Pacific with Von der Leyen announcing that the European Union (EU) was looking at firming up a security and defence pact with India in line with its partnerships with close allies Japan and South Korea.
The deadline for concluding the trade deal that would be the largest of its kind globally came over 17 years after the two sides first began negotiations for it. The talks for the pact were relaunched in June 2022 after they were suspended in 2013.
The visit to India by the EU Commission chief, accompanied by the College of Commissioners or senior political leaders of the bloc’s member nations, came days after Trump threatened the bloc with 25 per cent tariffs.
A senior official of the EU said besides the Free Trade Agreement (FTA), the two sides are also eyeing to conclude negotiations for an Investment Protection agreement and a pact on Geographical Indications (GIs).
In his media statement, Modi said many decisions were taken to “elevate and accelerate” India-EU partnership and that almost 20 ministerial meetings of different sectors took place in the last two days.
“This two-decade long strategic partnership between India and EU is natural and organic. Its core is built on trust, a shared belief in democratic values, and a mutual commitment to prosperity and shared progress,” he said.
The prime minister said a bold and ambitious roadmap has been prepared for the India-EU partnership for the period beyond 2025.
“It will be launched during the next India-EU summit,” he said.
“We have prepared a blueprint for collaboration in the areas of trade, technology, investment, innovation, green growth, security, skilling and mobility,” he said.
“We have directed our teams to conclude a mutually beneficial bilateral free trade agreement by the end of this year,” Modi said.
To strengthen the investment framework, there has also been talk of moving forward on Investment Protection and GI agreement, he added. (AGENCIES)
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