India deal close to completion, many more deals in the pipeline

Commission President Ursula von der Leyen said at the World Economic Forum in Davos in the direction of US President Trump: “We choose fair trade instead of tariffs. For partnership instead of isolation.”

Why is there so much criticism of Mercosur and comparatively no resistance to the deal with India? Probably because the agricultural and dairy sectors were excluded and overall an agreement that was not so far-reaching was negotiated, says the WU and WIFO trade expert Harald Oberhofer. And says: “India has great potential for Europe in the medium term. The sooner you get your foot in the door, the better – also given India’s current proximity to Russia.”

The EU-India agreement creates a market with around two billion people. The EU is already India’s largest trading partner. European companies receive lower tariffs for cars, wine and spirits. Indian suppliers will have easier market access in Europe for textiles or pharmaceutical products.

The desired diversification of the EU supply chains does not end there. A trade agreement with the economically developing Indonesia was concluded in September and is awaiting ratification. Despite the palm oil problem, there was no broader outcry.

There is also progress in talks with the Philippines, Thailand, Malaysia and the United Arab Emirates, according to Brussels. A number of other agreements are currently on hold, but depending on the general weather situation, talks could be resumed with the USA – for example with Australia.

Oberhofer says: “Europe scores with its rules-based system of cooperation. This will become even more important in a world in which China and the USA use the power of the strongest to try to assert only their own interests.”