‘We bring trust & predictability in extreme volatility’: Swedish envoy to Firstpost on India-EU trade deal

Key Highlights

• So I think the commitment that India and EU have made to each other creates a base of trust and predictability.”More from World EU-India pact to unlock trade growth, resilient supply chains and AI cooperation: Austria ‘We’re promoting investments, very interested in security & defence’: European envoys on trade deals with IndiaCiting the continuous volatility from across the Atlantic, Thesleff stated, “For investments and creation of jobs in India, this is essential as you don’t want to invest if you think that the playing field will change tomorrow.
• You want to invest in a predictable ecosystem.
• And this agreement paves the way for exactly that”. ALSO READ — ‘We bring trust & predictability in extreme volatility’: Swedish envoy to Firstpost on India-EU trade dealShortly after the interview, the EU published the provisional text of the free trade agreement (FTA) — described by Prime Minister Narendra Modi and EU chief Ursula von der Leyen as the “mother of all deals”. Editor’s Picks1After the tariff rebuke: How India should recalibrate its US strategy 2Tariffs, turmoil and the midterms: Beginning of the end of the Trump eraIndia and EU have envisioned it as a win-win agreement where more than 90 per cent of goods will lose tariffs or sea a reduction. Even though the negotiations were a long time-coming (first negotiations began in 2007), way before United States President Donald Trump entered the White House, analysts have said that his tariff war accelerated negotiations. STORY CONTINUES BELOW THIS ADWithout naming Trump, Thesleff said, “There’s been so much back and forth when it comes to tariffs all over the world.
• And I think that there is a certain fatigue when it comes to this volatility.
• And that’s why we need the predictability of the EU-India agreement.”For Europe, the FTA would open far wider entry into the Indian market for automobiles, auto components, spirits and wines, food products, machinery, chemicals, and pharmaceuticals. In return, India would gain significantly expanded access to the EU market for textiles, leather goods, footwear, gems and jewellery, chemicals, marine exports, and auto parts. As India and Europe largely export goods that the other does not produce, increased trade due to the FTA is likely to complement domestic industries instead of competing with them, according to analysts. Analysts have said the FTA is expected to boost trade in a way that complements rather than competes with domestic industries and India and EU largely export products that the other side does not manufacture. STORY CONTINUES BELOW THIS ADIndia-EU tra.