NEW DELHI, India, March 1: Negotiations for a major trade agreement between India and the European Union (EU) are expected to be challenging, but both parties seem determined to reach an agreement by the end of the year. Amid escalating tensions with the United States, particularly as Donald Trump threatens new tariffs on European goods, the EU is actively seeking new trade partners, with India emerging as a key focus.

On Friday, Ursula von der Leyen, President of the European Commission, announced that the EU and India aim to sign a free trade agreement by the end of the year. Speaking in New Delhi, von der Leyen described the agreement as potentially the largest of its kind globally, emphasizing the importance of completing it within the agreed timeline. She said, "This is why we have agreed with Prime Minister Modi to push to get it done during this year."

The timeline is ambitious, considering the lengthy history of negotiations between the two sides. Discussions on a trade deal began in 2007 but stalled for nearly a decade between 2013 and 2022. Despite these challenges, the EU is prioritizing India as part of its strategy to navigate an increasingly uncertain geopolitical landscape, where existing alliances seem fragile.

While acknowledging that the negotiations will be difficult, von der Leyen expressed confidence that both sides are motivated to make progress. "I am well aware it will not be easy," she said. "But I also know that timing and determination count, and that this partnership comes at the right moment for both of us."

The EU hopes to gain greater access to India's market, particularly for its cars and spirits, which are subject to high tariffs in India. The agreement may also include provisions for investment and Geographical Indications, which are protected designations for products linked to specific regions.

However, agriculture will be a contentious issue, with European farmers concerned about unfair competition from non-European imports. The challenge is also significant for India, which relies heavily on small-scale farms for agricultural production.

India is expected to be a tough negotiating partner for the EU, especially on environmental issues. The EU's Carbon Border Adjustment Mechanism (CBAM), a green legislation that applies to imports in the EU, has raised concerns. Critics argue that the CBAM could be perceived as protectionist. In response, an EU official defended the measure, stating, "These are fair measures, WTO compatible," and added that any concerns would be addressed during the negotiations.

Both sides remain committed to finding common ground, but the road ahead will likely be filled with difficult discussions as they work towards finalizing the agreement.