Germany on Tuesday emphasised on the need to resume European Union (EU)-India free trade agreement (FTA) talks that can send a strong message to “protectionist” and “anti-globalisation” forces. Without naming the forces, German Ambassador to India Martin Ney indirectly referred to US President Donald Trump, who has recently been walking out from multiple FTAs. “Both should do so for strategic reasons and to send out a strong political message,” he said. “A strong political figure in the West doubts the FTA. We should resume negotiations and send him a message,” the Ambassador added. 

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The German envoy said that Chancellor Angela Merkel, whom he met recently in Berlin at the conference of envoys, specifically asked him to pitch for resumption of FTA talks. “Germany has been a fervent advocate of an FTA (EU-India)... We also detect a willingness from the Indian side to resume negotiations,” Ney said. He said that more than tariffs, the other important aspect of the FTA was to set industry standards, meaning there should be one standard.

He then cited an example that while both countries have agreed to cooperate on projects like E-mobility, there needs to be standardising of charging stations like plugs used in the two regions. “Both sides would benefit from the economies of scale. But, more so, we should together set standards and not wait for the others to set it for us,” the envoy said. Talks on an FTA began in 2007, but have been held up since 2013.

During Prime Minister Narendra Modi’s visit to Berlin in 2017, Merkel and senior business leaders had urged for a speedy conclusion to the agreement. “There are growing protectionist trends around the world, but Germany believes the value chains are so deeply interconnected that we will continue to create fair trading conditions. Within this context, it is important that the FTA makes progress,” Merkel had said.

Trade Tally

  • Germany is India’s 6th largest trading partner, most important in EU 
  • Trade volume between two countries rose by 10% in 2017; touched €19 billion