During a speech at the World Economic Forum in Davos on Tuesday,The President of the European Commission, Ursula von der Leyen said that both sides are on the “cusp of a historic trade deal”, signalling that the pact could be signed soon. She also described it as the “mother of all deals”.
There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP,” she said in a section of her speech on EU efforts to diversify its trade.
Von der Leyen is expected to visit India early next week and will be the chief guest at the Republic Day parade on January 26 along with other European leaders. India and the European Union have been strategic partners since 2004.
The ambitious FTA is being firmed up at a time amid increasing concerns over Washington’s trade and tariff policies, which have impacted both India and the 27-nation EU.
India and the EU are also expected to unveil a joint comprehensive strategic vision that will govern their relationship for the period 2026-2030.
The EU and India had first launched negotiations for the free trade agreement in 2007, before the talks were suspended in 2013 due to a gap in ambition. The negotiations. The negotiations were relaunched in June 2022.
Commerce and Industry Minister Shri Piyush Goyal had also described the proposed FTA as the “mother of all deals”. “We have done FTA deals with seven developed countries so far. This one (EU) will be the mother of all. It will cover two of the world’s most powerful economies. We have very good growth possibilities,” Goyal said in New Delhi