The European Union is on the cusp of signing a “historic trade agreement” with India, which will give the 27-member bloc the first-mover advantage in the region, European Commission President Ursula von der Leyen announced on Tuesday.
“Right after Davos, I will travel to India,” the European Commission chief said while speaking at the World Economic Forum Annual Meeting in Switzerland’s Davos. “There is still work to do. But we are on the cusp of a historic trade agreement.”
She added: “Some call it the mother of all deals. One that would create a market of two billion people, accounting for almost a quarter of global GDP.”
The statement comes amid uncertainty about India’s long-pending trade deal with the United States. Without a deal with Washington, Indian goods are facing a combined US tariff rate of 50%, including a punitive levy for buying Russian oil amid the Ukraine war.
Von der Leyen, along with the president of the European Council, António Luís Santos da Costa, will visit India from January 25 to January 27. They will be the chief guests at the Republic Day celebrations in New Delhi.
“Europe wants to do business with the growth centres of today and the economic powerhouses of this century,” Von der Leyen said in Davos. “From Latin America to the Indo-Pacific and far beyond, Europe will always choose the world. And the world is ready to choose Europe.”
On January 27, India and the European Union are slated to announce the end of negotiations on a free trade agreement, PTI reported.
The European Union is India’s biggest trading partner, with bilateral trade in goods estimated at $135 billion in 2023-’24. A free trade agreement is expected to provide a further boost to economic cooperation.
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