Chair of EU Parliament's trade panel hopes for early FTA with India

TheChair of the European Parliament's Committee on International TradeBernd Lange, who was on a visit to Delhi had hoped for the early conclusion of a free trade agreement between India and the EU. Speaking to WION's Principal Diplomatic Correspondent Sidhant Sibal, Member of the European ParliamentLange said, "you in India have elections in 2024, we have European election in 2024 so it will be great to have an agreement before that election campaign will start. So mid or end next year, as I said political will there".

This is the first such major visit of the European Parliament delegation to India since the Russian invasion of Ukraine on 24thFebruary. A 7-member delegation of the European parliament's international trade committee, led by MEP Lange was in Delhi during which they met Finance Minister Sitharaman, Trade minister Goyal, NITI Aayog chief Rajiv Kumar and top ministry of external affairs officials including Secretary (West) Sanjay Verma, Sandeep Chakraborty, Joint Secretary (Europe West) and Secretary (Economic Relations) Dammu Ravi.

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Asked about European dependency on Russian energy, he explained,"want to be independent of fossil fuel supply from Russia in a reasonable time frame". Without taking China's name he said,"Now we are faced with the situation globally that lot of countries are using trade as a weapon."

WION: What brings you here to Delhi?

Bernd Lange: The international trade committee in the European Parliament is an important committee on scrutiny of any negotiation on the trade agreement and at the end of the day we have to say yes or no, or change a trade agreement. It is wise to have a fact-finding mission at the beginning of trade negotiations.

WION: What was your key focus during the various meetings?

Bernd Lange: The situation now is different than we had, in our last attempt to have a trade agreement 10 years ago. Now we are faced with the situation globally that lot of countries are using trade as a weapon. We are faced with a situation in which a lot of countries are using trade in a management way, some protective measures, specifically regarding pandemics. So, I guess it's time to rethink the relations between India and the EU as the 2 biggest democratic entities worldwide and this is also one result of my meetings here in Delhi. There is an open mind to restart negotiation in a different way between India and the EU.

WION: How hopeful you are about negotiations on India-EU FTA?

Bernd Lange: We have no red lines in our minds. If it's clear, negotiations will be given and taken. We have to find compromises on the question of services in Europe or questions on tariffs for European cars coming to India. A lot of items where we have to negotiate, if there is a will on both sides, then it can happen very fast. You in India have elections in 2024, we have a European election in 2024 so it will be great to have an agreement before the election campaigns start. So mid or end next year, as I said political will there, might be realistic.

WION: So you hopeful, that by mid of next year, FTA can be concluded?

Bernd Lange: Can be concluded, depends on negotiation rounds, willing to find a compromise, of course, we are not starting with zero. There are experiences with other trade agreements, India concluded just with Australia, we are negotiating with Mexico, Chile, New Zealand, and Australia. So, there are some standards, it's a question of which kind of speed we will take.

WION: The Russian invasion of Ukraine, did you discuss with the Indian side here and what exactly you told them?

Bernd Lange: The European position is very clear, the Russian aggression, invasion of Ukraine is an illegal movement. After Russian troops raped, it is all clear that Russian soldiers were part of war crimes against civilians in Ukraine therefore we want to stop the war immediately, we are using sanctions against Russia to push them for stopping the war. Worldwide we have different views on this, our position is quite clear and evident, this is an unacceptable move from the Russian leader and we expect democratic thinking people in a coalition against this war. Nevertheless, I can understand different views of course, I can understand a lot of wars are also happening on the social media.

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WION: Do you think trade with Russia will be difficult, not only for a European investor but also for investors anywhere in the world, including India?

Bernd Lange: The Russian aggression against Ukraine will indeedhaveconsequences for the world trade organizations. Just a few hours ago the WTO published a study that they expect the world trade will decrease, maybe up to 50 per cent because of this war. We may also see a change in investment. Lots of change we have to face.

WION: Energy linkages between Europe to Russia continue, how does Europe plan to decrease it?

Bernd Lange: I guess regardless of this war, there was a clear perspective from the EU to be independent of fossil fuels. We want to transform into a climate-neutral industrial society in 2050, so there were a lot of attempts to change the energy supply already and we have sped up the process for that. We will be independent of fossil fuel supplies specifically from Russia in a reasonable time frame, and I guess, a lot of possibility of cooperation. I know, the perspective of renewable energy in India and it will produce green hydrogen. We have a demand for green hydrogen. Prospective of creating, really the possibility of establishing a different kind of renewable and also have new trade relations based on green energy is a prospective for Bilateral Relations and also globally. This war, this transformation will change the global energy supply totally.