The free-trade pact — struck in India yesterday, with EU chief Ursula von der Leyen afforded all the pomp of a state visit — was almost two decades in the making.
Yet much has changed for both Europe and India in the last year to light a fire under the negotiations. India currently faces 50% tariffs on its US exports, while Europe has been battling repeated threats from Trump — most recently of new levies over Greenland.
The EU is far from alone in its eagerness to do business with India. And with US-India trade talks in the freezer, Prime Minister Narendra Modi is just as keen to receive all comers — including Russia’s president, Vladimir Putin.
New Zealand struck a trade deal with New Delhi in December. Germany’s Friedrich Merz was there this month on his first Asia trip as chancellor. In February, it’s the turn of French President Emmanuel Macron, attending a tech summit, while Brazilian President Luiz Inácio Lula da Silva has confirmed a visit as well.
Canadian Prime Minister Mark Carney is planning to visit India soon, with both sides already pledging to boost trade in oil and gas.
India isn’t the only destination for leaders seeking to diversify their economic ties.
Vietnam and the EU are expected to announce a comprehensive strategic partnership. UK Prime Minister Keir Starmer arrives in China today, while Carney was there two weeks back — and took flak from Trump for striking deals on EVs and agriculture with Beijing.
It’s unknown what the sudden rush to India means for New Delhi’s standing in Washington — and its prospects for a deal that provides tariff relief. So far, there’s little sign the US is budging.
That only makes Modi all the more likely to keep the door open to others. — Dan Strumpf