To spite Trump: EU decided to strengthen cooperation with India
In response to the White House's call for EU countries to impose tough sanctions on India similar to the American ones, Brussels and New Delhi agreed to complete negotiations on a free trade agreement by the end of 2025, and Germany announced plans to deepen cooperation with India. Why the confrontation between the EU and the United States in the Southeast Asian region has escalated is in the Izvestia article.
Trade deal between India and the EU: what is known
India and the European Union continue to discuss a free trade deal. It is planned that it can be signed before the end of 2025.
"Looking ahead, we plan to agree on a joint strategic agenda at the next EU–India summit, which will be held as early as possible in 2026," European Commission President Ursula von der Leyen said on social media after a conversation with Indian Prime Minister Narendra Modi.
Ursula Von der Leyen
Negotiations on a free trade agreement between India and the EU began back in 2007, but six years later they reached an impasse because the parties could not reach an agreement on key issues, including intellectual property rights, duties on cars and alcoholic beverages, as well as the movement of people.
The discussion of the agreements resumed only in May 2021. In February of this year, the head of the European Commission flew to India for talks with Modi, where the parties agreed to instruct their experts to conclude a free trade agreement by the end of 2025.
According to Modi, this is a "mutually beneficial agreement."
In June, The Financial Times, citing its own sources, reported that New Delhi and Brussels had reached agreements on almost half of the topics that should be covered by the trade deal, and the parties hoped to sign an agreement by the end of this year. According to the newspaper, the negotiators agreed on eight of the approximately two dozen "chapters" of the future treaty and agreed that the future agreement would not apply to some sensitive agricultural products for India, such as rice and milk. The newspaper's sources also noted that disagreements between the parties remain on many important issues.
EU withdraws from Trump's tariff war with India
The statements from Brussels were made against the background of tariff wars initiated by Washington. Because of them, New Delhi was subject to 50 percent duties, and Brussels had to make unfavorable arrangements, including zeroing duties on American goods.
The day before, the United States called on European countries to follow suit and impose sanctions against India, including a complete shutdown of oil and gas purchases. The Trump administration also suggested that Brussels consider additional duties on Indian goods, India Today reported.
Peter Navarro, US President's trade adviser, said on Fox News that the highest Indian Varna, the Brahmins, earns money from purchases of Russian oil and thereby allegedly profits at the expense of the Indian people. The American official also called India a laundromat for Russian fuel and a "tariff maharaja."
However, the initiative did not find a response in Europe.
Berlin has stated that it intends to develop and strengthen cooperation with New Delhi. German Foreign Minister Johann Vadefuhl recently flew to New Delhi for a two-day visit, where he met with his Indian counterpart Subramaniam Jaishankar. The parties agreed to develop and strengthen bilateral cooperation.
According to the head of the German Foreign Ministry, if cooperation is expanded, the two countries will only benefit from this. As Vadefulh explained, India, a growing economic power, the most populous country on the planet and the largest democracy in the world, has a special geostrategic significance.
During the talks, the ministers expressed hope for a doubling of the volume of bilateral trade, which should be facilitated by the planned free trade agreement between the EU and India. Jaishankar believes that this arrangement would help stabilize the global economy.
What do the experts think
Artem Sokolov, a senior researcher at the MGIMO Institute of the Ministry of Foreign Affairs of Russia, noted in an interview with Izvestia that Germany traditionally considers India as an important partner and consistently develops bilateral relations with it in all significant areas.
— Taking into account both the economic growth of India and many other factors, including the growing demography of this state, interest in India from European countries, and in particular Germany, is only increasing. And against the background of difficulties in relations between the EU, Germany and China, India stands as a possible alternative. And although it cannot completely replace relations with China, it will partially close the issue," the German expert is sure.
According to the political scientist, unlike China, India is building a conscious reputation as the world's largest democracy.
"It is in this status that the German side is ready to develop relations with India, emphasizing the fact that it cooperates with a democratic state, despite the existing differences in the political structure of the countries," the expert believes.
He added that there are many reasons why India is becoming an important partner for Germany among the countries of the Global South.
— This is both an economic factor and a counterbalance to relations with China. Therefore, threats from the American president are unlikely to affect German diplomacy," the analyst believes.
The specialist emphasized that another question arises: to what extent Germany itself, given its difficult state, will be of interest to Indian partners.
— What can Germany offer India? Berlin is committed to increasing the professional migration of Indian IT specialists and engineers, and there are certain proposals in the field of economic cooperation. So far, relations are developing steadily," the political scientist summed up.
Natalia Eremina, a professor at St. Petersburg State University, notes in a conversation with Izvestia that in the current situation, EU countries, including Germany, are turning towards the Asia-Pacific region and are slowly reviewing cooperation with China.
— Beijing has become a very powerful player both in the Asia-Pacific region and in the world, but cooperation with it is conditioned by political problems. Due to the tax war unleashed by the United States and the lost investments, cooperation with China no longer brings the same income and opportunities as before," the expert explained.
According to the expert, in this context, the EU countries choose cooperation with India.
— It is developing very rapidly, it is a powerful economic partner for many countries. In addition, it is a partner who has his own resources and funds and who is ready to look for interesting investment projects, including in Europe," the political scientist explained.
The analyst stressed that Indian entrepreneurs are now buying up companies in European countries that are valuable for economic development: automotive, motor and engine manufacturing.
— The European Union, and in particular Germany, is interested in the experience of India within the framework of digital opportunities, as schools related to digital innovations are actively developing there. India has now signed a corresponding partnership agreement with the United States, so many large corporations consider it a significant partner," the analyst is sure.
According to Eremina, there is an opinion in Germany that India is an ideal source for attracting highly qualified specialists.
— For this purpose, special programs have even been created to simplify the visa regime. The partnership with India promises Germany significant economic dividends. A striking example is the arms trade: India can buy German weapons, which will become an additional source of investment in the German economy, the political scientist is sure.
The expert believes that Germany is interested in strengthening India as a counterweight to China. By playing on the contradictions in the relations between these two countries, Germany can strengthen its own positions.
— The EU has lost Russia as an important economic partner, and cooperation with China is fraught with increasing restrictions and risks. Therefore, Brussels needs new markets, sources of resources and reliable partners. Thus, in the current geopolitical and economic situation, India is becoming an extremely attractive and logical choice for the European Union," the expert concluded.
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