India-EU Free Trade Agreement on the Horizon Amid Global Trade Tensions

Possible completion of a free trade agreement between India and the European Union by January's end was announced by German Chancellor Friedrich Merz, following productive discussions with Indian Prime Minister Narendra Modi. This move aims to strengthen trade relations amid international tensions.

Merz, during talks in Ahmedabad, highlighted the challenges posed by rising protectionism globally, which adversely affects German and Indian economies. He pointed out the ongoing trade tensions fueled by U.S. tariffs and Chinese export controls, calling for new independent trade networks.

The signing of such a deal with India aligns with the EU's recent trade engagements with South America's Mercosur group and efforts to reduce dependence on China. Memorandums of understanding on security cooperation, critical minerals, health, and AI innovations underscore this strategic partnership.