Liberals welcome the end of negotiations of a historic trade deal with India which has been 20 years in the making. This deal would see two great economic powers join forces and covers a combined market of around 2 billion people.
With recent geopolitical shocks including threats on Greenland’s sovereignty and increasing protectionism, Europe needs to remain open to new markets and strengthen partnerships across the globe as allies are not as solid as they once were.
ALDE Party President, Svenja Hahn MEP (FDP, DE) commented on the advantages of such an economic partnership which represents roughly 25% of global GDP:
“India and the EU working closer together opens a huge economic potential and strengthens the EU’s geopolitical role. The EU Commission now needs to ensure a fast ratification process to not lose this momentum for more international cooperation and free trade. The EU needs more trade with more partners, to diversify our supply chains and make us less dependent on China or the US.”
High Representative for Foreign Affairs and Security Policy Kaja Kallas spoke about the deal’s strategic purpose:
“There is strong momentum for closer cooperation with India, and we are seizing it. When two major democracies act together, we build stronger shared security. As the global order shifts, the EU will continue to deepen its diplomatic and economic ties across the world. Strong partnerships multiply our strength.”
ALDE Party believes in free trade and open economic markets. This deal not only proves that Europe can expand its markets and craft new alliances, but that we are ready to once again lead in the global arena.
Diversifying trade partners strengthens European supply chains and reduces dependencies on China and the US. This would be a huge boost for the European economy, as both India and the EU will cut tariffs on over 90% of goods traded between them by value.
The EU and India can formally sign the agreement once the Council approves it. It will then require the European Parliament’s consent and India’s ratification. After these steps, the agreement can officially enter into force.