Amid Trump’s tariff offensive, PM Modi and EU leaders push for swift India-EU FTA conclusion

Prime Minister Narendra Modi on Thursday held a joint telephonic call with Antonio Costa, the President of the European Council, and Ursula von der Leyen, the President of the European Commission. In this phone call, the leaders reaffirm their commitment to an early conclusion of the India-EU free trade agreement (FTA) as well as the implementation of the IMEEC corridor. 

They also welcomed the progress in bilateral relations in key sectors, including trade, technology, investment, innovation, sustainability, defence, security, and supply chain resilience.  

Moreover, the leaders discussed organising the next India-EU summit in India at an early date of convenience. The Prime Minister also invited both leaders to India for the same. The three leaders also exchanged their views on the efforts to bring an end to the ongoing Ukraine conflict.

On the Ukraine issue, Modi reiterated India's consistent support for peaceful resolution of the conflict and early restoration of peace and stability. The leaders agreed to remain in touch. 

The development comes a day after External Affairs Minister S Jaishankar said that India would like to see its negotiations for an FTA with the European Union move to a "decisive conclusion" soon. 

Speaking at a joint media briefing after talks with German foreign minister Johann Wadephul, Jaishankar said the former told him that Germany will put its full weight behind the India-EU FTA. "We are counting on your support," the MEA told Wadephul. 

The initial goal was to complete the negotiations by 2025-end but both sides have been sticking to their guns. The European Union is pushing for reduced duties on cars and dairy produce as well as seeking India's commitments to stricter climate and labour standards. 

India, on the other hand, is seeking to ensure protection for its farmers, to avoid rigid environmental standards and retain control over potential legal disputes. 

PM Modi's push for the swift conclusion of the FTA with the European Union also comes at a time when US President Donald Trump has slapped 50 per cent tariff on Indian imports, including an additional 25 per cent penalty for Russian crude imports. The US tariffs against India came into effect last week.