India Seeks German Support to Boost EU Ties, Trade Negotiations

• India wants Germany’s help to fast-track its EU free trade deal
• Talks face hurdles over tariffs and standards, but Germany is optimistic
• Rising US trade tensions push India to strengthen EU ties

India is requesting Germany's support to strengthen relations with the European Union and for fast tracking talks related to ultimate negotiation of a long dormant Free Trade Agreement (FTA), Foreign Minister S. Jaishankar said during talks with German counterpart Johann Wadephul in New Delhi. The ministers expressed the need to double bilateral trade, especially in defence and security.

Jaishankar urged Berlin to support India in its support for fast tracking of FTA discussions with the EU toward a "decisive conclusion". The trade talks, which were originally restarted in 2021 after an eight-year hiatus, have been hindered by successive problems.

The EU is pressing India to reduce import tariffs on cars and dairy products and to impose more stringent labour and environmental regulations. In contrast, India has resisted taking measures that would harm its domestic farmers or reduce its policy autonomy, especially with regard to dispute settlement.

Despite obstacles, Wadephul was optimistic that a deal could be hashed out within months. He pointed out that increasing global trade barriers call for cooperation between India and Germany to reduce them instead.

Also Read: India, Singapore to Boost Ties in Manufacturing, Green Shipping

The meeting occurred at the same time Indian trade negotiators were in Brussels for discussions~; something confirmed by Commerce Minister Piyush Goyal.

Wadephul's visit also coincided with heightened tensions between India and the United States after Washington placed an additional 25%, reportedly in relation to India's continued importation of oil from Russia, on Indian goods. This has been largely rebuked by New Delhi.

Both China and India have each accused the US and EU of hypocrisy, reminding them of how they continue to trade with Russia despite the war in Ukraine. In that context, India is seeking deeper engagement with Germany and the EU as a way of potentially ameliorating their position vis-a-vis the international trade situation and achieving fairer terms on any future agreements.