Spotlight on FTA ahead of EU chief's key meetings in India

A meeting of the top leadership of India and the European Union (EU) on Friday is expected to give fresh impetus to efforts to seal an ambitious free trade agreement (FTA), especially after US President Donald Trump's threat to hit the 27-member bloc with 25% tariffs.

- Rajeev Jayaswal and Rezaul H Laskar

NEW DELHI:

European Commission President Ursula von der Leyen arrived in New Delhi on Thursday and will be joined by 20 members of the EU's 27-strong College of Commissioners—their first such collective visit to any major country after getting a new mandate last year. The delegation will meet Prime Minister Narendra Modi and key cabinet members, including external affairs minister S Jaishankar, commerce minister Piyush Goyal and finance minister Nirmala Sitharaman.

Von der Leyen set the tone for the visit by describing India as a "strategic ally" at a time of intense geopolitical competition. "In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally. I'll discuss with @narendramodi how to take our strategic partnership to the next level," she said on X soon after she was received at Delhi airport by minister of state Anupriya Patel.

India may flag with the EU the imposition of non-tariff barriers such as a carbon border tax and deforestation regulations, people aware of the development said, pointing to the impact these could have on Indian micro, small and medium enterprises (MSMEs).

The EU has said a key objective of its trade negotiations is removing barriers and helping European companies, particularly smaller firms, to export more. In the same spirit, it must reciprocate by removing trade barriers on Indian firms, especially MSMEs, the people said, requesting anonymity.

Trade issues are set to figure in both the meeting between Modi and Von der Leyen and Goyal and EU trade commissioner Maros Sefcovic, who will hold talks in Mumbai on Saturday to lay the groundwork for the 10th round of FTA negotiations scheduled for Brussels during March 10-14—the first talks after a six-month gap since the ninth round held in New Delhi last September.