New Delhi: The European Union (EU) is exploring a security and defence partnership with India, while also aiming to complete negotiations for a free trade agreement by the end of this year, European Commission President Ursula von der Leyen said in New Delhi Friday.
“…I can announce that we are exploring a future security and defence partnership with India in the mould of the partnerships we have with Japan and South Korea. This will help us step up our work to counter common threats whether on cross-border terrorism, maritime security threats, cyber-attacks or the new phenomenon we see: attacks on our critical infrastructure,” she said in her keynote address at an event organised by the foreign policy magazine India’s World.
The European Commission President is in India for a two-day visit, and will hold discussions with Prime Minister Narendra Modi Friday, during which the leaders are set to announce a new strategic agenda between the two partners. It is von der Leyen’s first official visit since starting her second term as European Commission President last December.
The visit is politically significant as it comes at a time where there is a churn in global geopolitics and for Europe in particular due to the war in Ukraine. US President Donald Trump broke with his European allies earlier this week to vote with Russia in the UN, opposing a resolution that condemned Moscow’s actions in Ukraine.
The war in Ukraine also has the EU seeking out security partnerships with nations such as Japan and the Republic of Korea. The two Asian countries signed an agreement in this sector with the EU last year.
Trump has also taken a strong stance against the EU, saying a few days ago that the union was created to “screw” the US, while threatening to impose 25 per cent tariffs on goods emanating from its member-states. The US excluded the EU from preliminary negotiations with Moscow in Saudi Arabia earlier this month on the war in Ukraine, a move which has concerned the European leadership.
The EU is also keen to de-risk its supply chains from China, which has remained one of its largest trading partners for the last few years. The EU introduced sanctions on Chinese electronic vehicle (EV) manufacturers of up to 36 percent in October 2024, as it looks to step up its own economic productivity.
This has led to Brussels looking to strengthen its partnership with India, which was the main point of von der Leyen’s speech. The thrust of the new vision outlined by the European Commission President is cooperation in security and defence sectors, apart from broadening the partnership in trade and technology and connectivity projects.
“Today, the EU is India’s largest trading partner, sitting ahead of both the US and China. European companies create 8 million jobs here in India. But we could do so much more by improving market access and tackling the barriers to trade,” said the European Commission President.
A key pillar of the partnership is the free trade agreement (FTA). The latest set of negotiations for the FTA began in 2022, but there still exist a number of challenges, including India’s tariffs on automobiles and spirits. For India, the EU’s non-tariff measures such as the Carbon Border Adjustment Mechanism and deforestation rules are the major challenges.
The European Commission President has also brought 21 members from the College (Cabinet) of Commissioners to India, for likely the first time.
While substantive agreements are not expected from the visit, it is seen as an important step towards the EU-India Summit, which is likely to take place later this year.
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Push for India-Europe FTA
India and the EU have had at least two sets of negotiations on a comprehensive trade deal. The first began during the tenure of Prime Minister Manmohan Singh but talks were suspended in 2015. The latest round of negotiations began in 2022.
“A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world. I am well aware it will not be easy… this is why we have agreed with Prime Minister Modi to push to get it done during this year. And you can count on my full commitment to make sure we can deliver,” said von der Leyen.
The EU was founded primarily as a trading bloc, which eventually expanded to cover other sectors. But the core competence of the organisation remains trade. For the EU Commission– its executive organ–trade is its best tool to build ties with other countries, which is why it has at the political level been pushing for the completion of the trade deal with India.
A person familiar with the matter said the organisation does not take a business delegation or promise investment during visits, but rather works on building an enabling environment for such investment.
On defence and security, the EU maintains a project-by-project partnership with India till date. The key players in the defence and security sector remain the member-states themselves. In that sense, for the EU, a trade deal is an indication of the seriousness with which Brussels looks at ties with non-member states.
However, given the large number of differences between India and the EU on trade measures, whether an FTA deal is completed before the end of 2025 remains to be seen.
During her speech, Von der Leyen also stressed on the importance of the India-Middle East-Europe Economic Corridor (IMEC). The corridor, which would see India connected to Europe via West Asia, could reduce the travel time of goods by up to 40 percent, she said.
“This corridor is much more than ‘just’ a railway or a cable. It is a green and digital bridge across continents and civilisations… we are ready to invest in concrete projects that can already start making these connections happen,” said the European Commission President.
(Edited by Nida Fatima Siddiqui)
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