Will India cut tariffs on wine, cars? What EU chief, PM Modi will discuss

At present, the United States and Europe aren’t just divided by an ocean. They are also divided owing to tensions that Donald Trump is ratcheting. Amidst this turbulence, European Commission president Ursula von der Leyen will start her India two-day visit today (February 27), along with 27 Commissioners of the EU, called the College of Commissioners.

India’s Ministry of External Affairs confirming the visit, said, “This will be the first-ever visit of the EU College of Commissioners together to India and among the first such visits since the start of the mandate of the current European Commission in December 2024 after the European parliamentary elections held in June 2024.”

Herve Delphin, Ambassador of the Delegation of the European Union to India, said that the visit is a significant moment for relations of both regions. He said, “This will be an important week for the EU and India relations. You will have, for the very first time, the president of the European Commission and the whole college, equivalent to a full government of the EU Commission, coming to Delhi for two days of talks. This visit is highly symbolic, and it speaks about the importance the EU attaches to the relationship with India. We both see each other as partners of choice but also as forces for good.”

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But why is this meet significant? And what can one expect from this visit?

The EU College of Commissioners explained

Before we delve into the agenda of the meet, let’s understand who are the 27 commissioners who are accompanying Ursula von der Leyen to India.
The College of Commissioners, of 27 members, provides the European Commission with political leadership. Simply explained, the College of Commissioners is collectively responsible before the European Parliament.

The European Commission president delegates each of the commissioners a specific responsibility and the powers of a commissioner depends on his/her portfolio.

To be selected as a commissioner, a candidate’s name has to be put forward by national leaders in the European Council, taking account of the results of the European Parliament elections. Each nominee then appears before the European Parliament to explain their vision and answer questions. Parliament then votes on whether to accept the nominees as a team. Finally, they are appointed by the European Council, by a qualified majority.

The current Commission’s term of office runs until November 30, 2029.

Trade and tariffs on EU’s mind

EU chief Ursula von der Leyen and her college of commissioners are scheduled to hold talks with Prime Minister Narendra Modi in New Delhi during their two-day visit. Ahead of the visit, von der Leyen even hailed India as one of EU’s “most trusted friends and allies, saying, “In this era of intense geostrategic competition, Europe stands for openness, partnership, and outreach.”

According to insiders, one of the focus points would be to take stock of the Free Trade Agreement and the EU-India Trade and Technology Council (TTC). A senior EU official said that the bloc is looking at an “ambitious” as well as a “commercially meaningful” free trade agreement that addresses tariffs and non-tariff barriers.

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As another official was quoted telling AFP, “The case for a free trade agreement has never been stronger.”

India and the EU share strong trading ties. The EU is India’s largest trading partner, accounting for €124 billion (Rs 11 lakh crore) worth of trade in goods in 2023 — more than 12 per cent of total Indian trade, according to the EU. Notably, talks for this pact between the two were only restarted in 2022 and the next round of negotiations is scheduled for March 10 -15 in Brussels.

Along with the Free Trade Agreement, both sides will also be discussing the Trade and Technology Council (TTC). Formally announced in 2022, the TTC is a platform to discuss digital economy, clean technology, trade and investment.

Tariffs will also be an area of concern that will come up in talks. An official was quoted as telling The Indian Express, “India’s market is relatively closed, especially on key products of commercial interest to the European Union and to our member states’ industries. These include cars, as well as wines and spirits.”

The EU is seeking to de-risk from China and hence, it is looking to India, particularly on items such as wine and whiskey.

In turn, India is looking for better integration with the EU services sector and aiming to create more opportunities for skilled labour mobility.

Ukraine war on the table

With the Russia-Ukraine war entering the fourth year, there is little doubt that the conflict won’t figure in talks between the EU and India. An official confirmed Ukraine will be a part of the agenda during the talks between PM Modi and President Leyen and that the bloc looks at India as a key partner for peace.

“Wherever we go, we talk about Ukraine, of course, in a lot of detail, given our interests, this is also formally part of the agenda of the bilateral meeting between President von der Leyen and Prime Minister Modi. So, this will be discussed, and I’m sure our president will want to give further updates on her latest visit to Kyiv. And our outlook can only re-emphasise how important Ukraine’s security is for our own security, and how important Ukraine’s security is also for Indian security,” said a senior EU official.

On the issue of the war, EU is expected to raise the issue of enforcement of sanctions on Russia. However, this may be a tough task, as New Delhi has remained resolute that it won’t take sides in the war and has been importing crude oil from Moscow.

AI and other fields

Cooperation on technology and artificial intelligence, where Europe and India are eager to play a larger role, will also be on the table. This will follow up on discussions that were held at the AI Action Summit in Paris earlier this month where PM Modi was the co-chair.

Ursula von der Leyen and Modi will also hold talks on the India-Middle East-Europe Economic Corridor (IMEC). “IMEC is a very important initiative for how we think about partnerships. This is about investing in infrastructure, building the connections between us, between India and Europe, with the Middle East in the middle of it. So that includes park infrastructure, that includes railways, that includes maritime shipping lanes. This is a project or an initiative that was at the time also very much supported by President Biden and the United States, and it has had much wider support from our side. We remain very much interested. We remain fully committed to developing this infrastructure, to continue the investments along this corridor and to build that connectivity where we are still in an early phase,” an EU official told news agency ANI.

Significance of timing of visit

Geopolitical observers note that the timing of von der Leyen’s visit is also of significance. It comes at a time when the United States is pushing further away from Europe under the Donald Trump administration.

Trump has threatened the European Union with tariffs, saying that taxes on EU goods imported into the US could happen “pretty soon”. The US president has repeatedly complained about the EU’s car exports to the US, with fewer vehicles being shipped the other way.

Moreover, Trump has upended the Western defence architecture by launching Ukraine talks with Russia’s Vladimir Putin without providing Europe a seat at the table.

As Andre Sapir of Brussels-based think tank Bruegel told AFP, “The European Union has been left looking for friends and India, the world’s most populous country, is a natural candidate.”

With inputs from agencies