German Chancellor Friedrich Merz suggested that the European Union and India could sign a free trade agreement by the end of this month, after he met with Indian Prime Minister Narendra Modi on Monday. This is reported by Reuters, writes UNN.
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According to Merz, the presidents of the European Commission and the European Council will visit India at the end of January to sign the agreement, if it is finally agreed by then. Merz made the announcement during his first visit to India since taking office as chancellor, in the city of Ahmedabad in the west of the country.
"In any case, this will be another important step forward to ensure the implementation of this free trade agreement," Merz said.
Previously, negotiations were expected to conclude by the end of 2025. However, according to the German government, there are high expectations that the agreement could be signed at the end of January after "very intensive" negotiations between Merz and Modi.
Indian Trade Minister Piyush Goyal, speaking at a separate event in the western state of Gujarat, said the agreement was in its final stages.
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Merz noted that the world is experiencing a "resurgence of failed protectionism" that harms both Germany and India. He did not name specific countries. The US, in particular, is pressuring India by imposing tariffs to force the country to stop buying Russian oil and gas, which Washington and the EU believe are being used to finance the war in Ukraine.
China's export controls on minerals used in the automotive industry last year led to months of supply chain disruptions due to the trade war between the US and China, affecting German automakers. Beijing also imposed restrictions on some semiconductors widely used in the automotive industry after the Dutch government's decision to take control of the Chinese chipmaker Nexperia.
For the EU, signing an agreement with India will be another step in creating its own trade networks after the bloc last week agreed to conclude an agreement with the South American Mercosur bloc, and will help reduce dependence on China.
Germany, in particular, wants to cooperate more closely with India in the field of security to reduce the latter's dependence on Russia, Merz noted. To this end, the countries signed a memorandum of understanding, as well as agreements on critical minerals, healthcare, and an artificial intelligence innovation center.
The memorandums signed today on all these issues will add new impetus and strengthen our cooperation
India still cooperates closely with Russia in the field of security, and much of its military equipment is manufactured in Russia. In addition, it is one of the largest buyers of Russian oil and gas, along with China.
Germany insists that the Indian government prevent Indian companies from circumventing sanctions against Russia and reduce energy imports from Russia — demands that India has so far rejected.