“Mother of All Deals”: EU and India Close in on Historic Trade Pact, says Von der Leyen at WEF
The European Union is on the brink of finalizing a long-awaited free trade agreement with India, European Commission President Ursula von der Leyen announced on Tuesday. Speaking at the World Economic Forum in Davos, she described the potential pact as “historic,” signaling a major shift in economic relations between the two powers.
While von der Leyen acknowledged that negotiators still have final hurdles to clear, she emphasized that substantial progress has been made.
“There is still work to do. But we are on the cusp of a historic trade agreement,” von der Leyen stated. “Some call it the mother of all deals—one that would create a market of 2 billion people, accounting for almost a quarter of global GDP.”
A Strategic Economic Shift
The proposed pact, which has been years in the making, is expected to deepen economic ties across several critical sectors:
- Goods and Services: Reducing tariffs and barriers to trade.
- Investment Flows: Encouraging cross-border capital investment.
- Regulatory Cooperation: Aligning standards to facilitate smoother commerce.
A successful breakthrough would mark one of the EU’s most significant trade achievements in recent years. It aligns with the bloc’s broader push to diversify its trade partnerships amidst geopolitical uncertainty. For India, the deal is expected to significantly boost its position in global supply chains at a time when governments worldwide are actively reassessing their economic dependencies.
Next Steps
The negotiations are set to enter a critical phase immediately. Von der Leyen is scheduled to travel to India early next week, a visit widely seen as an opportunity to accelerate the final discussions. Analysts suggest this trip could potentially set the stage for a final political agreement, sealing a partnership that links two of the world’s largest democracies.
