The European Union is close to finalising a free trade agreement (FTA) with India, although some steps remain before the deal can be concluded, European Commission President Ursula von der Leyen said on Tuesday.
Addressing a gathering at the World Economic Forum (WEF), von der Leyen said there was still work to be completed, but indicated that negotiations were nearing a critical stage. She described the proposed agreement as potentially historic, noting that it could create a combined market of around two billion people and account for nearly a quarter of global gross domestic product.
Von der Leyen was outlining the 27-member bloc’s broader efforts to diversify and strengthen its global trade relationships. She said the European Union was seeking to expand economic partnerships as part of a wider strategy to reinforce trade resilience and reduce over-dependence on a limited set of markets.
She is scheduled to travel to India following the conclusion of the WEF to advance discussions aimed at finalising the agreement. Von der Leyen said strengthening economic ties and deepening cooperation between Europe and India remained a priority, and described the proposed FTA as a key component of Europe’s global trade approach.
According to the European Commission president, Europe remains committed to engaging with partners across the world and positioning itself as an open and reliable trading bloc. She said the underlying objective of the EU’s outreach strategy was to create a stable and well-regulated environment that supports investment, facilitates trade and enables sustainable economic growth.
The comments come ahead of von der Leyen’s visit to India later this month. She and European Council President Antonio Costa are scheduled to attend India’s 77th Republic Day celebrations as chief guests at Kartavya Path in New Delhi on 26th January. At the invitation of Prime Minister Narendra Modi, the two leaders will undertake a three-day state visit to India beginning on 25 January.
