European Commission Chief Ursula von der Leyen said on Tuesday that a historic trade agreement is about to be signed between India and the European Union (EU). This free trade agreement will create a new market for 200 crore people, which will represent about 25 percent of global GDP. He called it the Mother of All Deals. Ursula said this at the World Economic Forum (WEF) held in Davos. She will be on a visit to India from 25 to 27 January and the completion of this agreement can be announced in the India-EU summit to be held on 27 January. Ursula called the agreement the mother of all deals. In her address, Ursula von der Leyen termed the agreement as the “Mother of all deals”. She said, “I am going to India. There is still some work left, but we are on the threshold of a historic agreement. This deal will give Europe the ‘first-mover advantage’ (first big opportunity) to do business with India, the fastest growing and most dynamic country in the world.” What will be the benefit of the agreement This Free Trade Agreement (FTA) will greatly increase trade between the two parties. Trade with the EU stood at $137.41 billion in 2023-24, which is expected to double after this agreement. The agreement will reduce tariffs on goods and services, making trade easier. The two sides will also announce a defense agreement and a strategic plan for 2026-2030. India-EU agreement announced amid Trump tariffs This agreement is being reached at a time when Trump’s new tariff policies and trade sanctions have created problems in the global supply chain. India and all 27 countries of the European Union have been affected by America’s ‘tariff war’. In such a situation, both sides have decided to strengthen mutual trade. India is exploring new markets to sell Indian products by entering into agreements with European countries. European leaders will be the chief guests on Republic Day. This time European Council President Antonio Costa and European Commission President Ursula von der Leyen will attend India’s Republic Day celebrations as chief guests. There will be bilateral talks with Prime Minister Narendra Modi during this visit to be held between 25 to 27 January. The long wait of 19 years will end. The first attempt for a Free Trade Agreement (FTA) between India and the European Union started in the year 2007. However, these talks were halted in 2013 due to differences in ambitions and rules. After a gap of about 9 years, talks were started again in June 2022. Now this deal is going to be finalized in the beginning of 2026.
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EU chief said- Historic trade deal with India soon: Announcement possible on Republic Day; Preparations to reduce the impact of Trump tariffs
