The India-EU FTA, dubbed the 'mother of all deals,' is expected to be signed by year-end and faces fewer political hurdles, says German envoy Philipp Ackermann. He calls it a 'game changer' set to be implemented by the end of India's fiscal year.
Fewer Hurdles Expected in European Parliament
German Ambassador to India Philipp Ackermann on Friday said that the India-European Union Free Trade Agreement (FTA) is expected to face significantly fewer political hurdles in the European Parliament compared to other recent international trade pacts. Speaking with ANI, Ambassador Ackermann asserted that the deal, frequently described as the "mother of all deals," lacks the intense controversy that has historically complicated the ratification of similar EU trade frameworks.
"Unlike other FTAs, in this case, we don't expect too many problems in the European Parliament," the envoy stated while cautioning, "We have to be very careful; parliaments have their own minds. But I think it is fair to say that it is in some aspects, much less controversial than other FTAs." The Ambassador characterised the upcoming FTA as a "huge game changer" that is set to redefine economic ties between the two powers. With negotiations having concluded earlier this year, the agreement is currently undergoing the final stages of legal scrubbing.
Timeline for Signing and Implementation
Looking ahead to the formal timeline, the German envoy reaffirmed that the agreement could be signed during a Council meeting in December. Following the signing, the focus will shift toward the European Parliament's approval process, with the objective of full implementation by the end of the current Indian fiscal year. "So the FTA for us, for the German business, is a huge game changer, I would say. So you ask about the schedule, the time frame, and I think by the end of this year, we hope to see it signed. I think in December, there is a council where that could be signed, and then it goes to Parliament. So I think, you know, I'm an optimist. I think by the end of the Indian fiscal year, one should be ready to implement it," he affirmed.
Momentum Builds at G7 Summit
Following the official finalisation of negotiations for a historic India-European Union Free Trade Agreement (FTA) in January this year, hailed as the "Mother of All Deals", India and the EU are moving rapidly to sign the pact by the end of the year. During a press briefing following Prime Minister Narendra Modi's participation in the 52nd G7 summit in Evian, France, Foreign Secretary Vikram Misri highlighted that India and the European Union are set to sign the Free Trade Agreement (FTA) before the end of the year.
The development was confirmed following a high-level meeting on the sidelines of the G7 summit, where Prime Minister Narendra Modi met jointly with European Commission President Ursula von der Leyen and European Council President Antonio Costa. "With the European Union, the Prime Minister met jointly with both with European Commission President, Mrs. Ursula von der Leyen, and the European Council President, Mr. Antonio Costa, and they recalled the fact that discussions on an India-EU FTA, the negotiations, the announcement of the conclusion of negotiations happened earlier this year when the two leaders were visiting New Delhi, and the understanding that by the end of the year the agreement will be signed," he said.
"And this is something that came up in their meeting in Evian on the sidelines of the G7 meetings and they once again reaffirmed their desire and instructed the respective teams to do whatever was necessary to make this signing happen before the end of the year," he added.
Leaders Reaffirm Commitment on Social Media
The momentum towards this landmark agreement was also fully on display following a high-level meeting between PM Modi and EU leadership. In synchronised posts on social media platform X, European Commission President Ursula von der Leyen and European Council President Antonio Costa detailed the high-stakes diplomatic development, writing, "Dear @narendramodi, it is a pleasure to meet again so soon. Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year. And accelerate work on an investment agreement. We will also step up security & defence cooperation. And join forces for better connectivity by advancing IMEC, the India-Middle East-Europe Corridor."
Scope and Impact of the Landmark Pact
Expressing great optimism over the trajectory of India-EU relations following the session on the sidelines of the G7 Summit, Prime Minister Narendra Modi also posted on X, "It was wonderful meeting European Council President Antonio Costa and European Commission President Ursula von der Leyen in Evian earlier today. At the start of this year, India was proud to host them for our Republic Day celebrations. This has been a great time for India-EU ties as we have concluded the Free Trade Agreement." This comprehensive India-EU pact spans goods, services, and digital trade. It is set to create a massive free market covering nearly two billion people and a quarter of the global economy, opening new avenues for trade, investment, and technology cooperation. The FTA also eliminates tariffs on over 90 per cent of goods traded between the two sides. (ANI)
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