India and the European Union (EU) will sign their Free Trade Agreement (FTA) by the end of this year and speed up negotiations on an investment agreement, president of the European Commission Ursula von der Leyen said Wednesday.
“Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments,” she posted on X after meeting with Prime Minister Narendra Modi on the sidelines of the G-7 Summit at Evian in France.
The European Commission is the executive body of the 27-member EU. She also said that both sides will accelerate work on an investment agreement.
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India and EU had concluded negotiations on their FTA on January 27 this year. Apart from FTA, India and EU are also negotiating agreements on investment and geographical indications. These are being discussed separately.
Von der Leyen also said that India and the EU will join forces for better connectivity by advancing IMEC, the India–Middle East–Europe Corridor (IMEEC).
“During our talks, we discussed how to further deepen economic linkages in the times to come. Our growing cooperation can play an important role in strengthening peace, stability and prosperity in today’s global environment,” Modi said on the meeting with the EC President .
Institutional Guardrails
The investment protection agreement aims to provide investors from both sides with a predictable and secure investment environment, through commitments on non-discrimination, protection against expropriation without compensation and unfair treatment of investors and their investments, while preserving the right to regulate. It will also allow for transfer of returns and put in place a dispute settlement mechanism to enforce such rules.
The Geographical Indications Agreement, once concluded, will support rural communities and help preserve the cultural and culinary heritage of both sides. India and EU restarted negotiations on their FTA in July 2202 after the earlier attempt was abandoned in 2013.
Logistics Engine
IMEEC is a planned multi-modal trade route designed to connect India to the European Union through ports, railways, and energy and digital networks. It aims to cut transit times between India and Europe by 40% while reducing logistics costs by 30%
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India, EU, US, UAE, Saudi Arabia, France, Germany, and Italy are part of the initiative announced during the G-20 Summit in New Delhi in 2023. Currently infrastructure planning and construction phases of the project are ongoing. The project continues to face geopolitical complexities and execution challenges due to regional conflicts in the Middle East, which have driven partner nations to emphasize phased development.
TOPICSEuropean UnionThis article was first uploaded on June seventeen, twenty twenty-six, at fifty-nine minutes past eleven in the night. © The Indian Express (P) Ltd