Modi, EU leaders push for FTA by December, discuss Ukraine conflict and IMEEC project

New Delhi: India and the European Union on Thursday pledged to seal their long-awaited free trade agreement (FTA) by December, with Prime Minister Narendra Modi, Portuguese Prime Minister Antonio Costa, and European Commission President Ursula von der Leyen reaffirming their commitment to a rules-based global order amid Washington’s disruptive trade policies.

In a joint phone call, Modi reiterated India’s consistent support for a peaceful resolution of the Ukraine conflict and early restoration of peace and stability. Von der Leyen, in a social media post, stressed that India has an important role in pressing Russia to end “its war of aggression” and in helping create a path to peace, adding that the conflict poses global security risks and undermines economic stability. She also welcomed India’s continued engagement with Ukrainian President Volodymyr Zelenskyy.

The leaders underlined the strategic role of the India-EU partnership in addressing global challenges, fostering stability, and promoting mutual prosperity. They also discussed holding the next India-EU summit in India at an early date, with Modi extending an invitation to Costa and von der Leyen.

The conversation comes as India looks to counter the impact of the Trump administration’s steep 50 per cent tariff on Indian goods, even as EU trade commissioner Maros Sefcovic prepares for a visit to New Delhi amid reports of significant progress in trade negotiations. India and the EU had relaunched FTA talks in June 2022 after an eight-year gap.

According to an Indian readout, Modi, Costa and von der Leyen welcomed progress in bilateral relations across trade, technology, investment, innovation, sustainability, defence, security, and supply chain resilience. They reaffirmed their shared commitment to concluding the FTA by year-end and advancing the India-Middle East-Europe Economic Corridor (IMEEC), finalised during the 2023 G20 Summit in Delhi. The IMEEC aims to link Asia, the Middle East, and Europe through a vast network of roads, railways, and shipping routes to boost regional integration.

Looking ahead, von der Leyen said both sides plan to adopt a joint strategic agenda at the next India-EU summit, “as early as possible in 2026,” while stressing the need for immediate progress to conclude the FTA negotiations this year.

The leaders also exchanged views on regional and global issues of mutual interest and agreed to remain in close touch.
(With PTI inputs)