Germany's Merz floats possibility of EU-India trade deal by end of January

German Chancellor Friedrich Merz suggested the European Union and India could finalise a free trade agreement as early as the end of this month, following his meeting with Indian Prime Minister Narendra Modi on Monday (January 12).

The presidents of the European Commission and European Council would travel to India at the end of January to sign the agreement if there is a deal by then, Merz said during a visit to the western Indian city of Ahmedabad.

"In any case, they will take another major step forward to ensure that this free trade agreement comes into being,” Merz said during his first trip to India since becoming chancellor.

Negotiations had previously been expected to conclude by the end of this year. However, according to German government sources, there are high expectations that a deal could be signed at the end of January after "very intensive" talks between Merz and Modi.

For the EU, signing an agreement with India would follow the bloc's go ahead last Friday for concluding a deal with South America's Mercosur group and would mark another step in creating its own trade networks as the United States shakes up global trade and would help reduce reliance on China.

In particular, Germany wants to work more closely on security issues with India to reduce the latter's reliance on Russia, Merz said.

The countries signed a memorandum of understanding to that effect, in addition to agreements on critical minerals, the health sector and an artificial intelligence innovation centre.

Production: Michele Sani/Reuters