India’s Republic Day parade will have more than ceremonial shine this year, as the spotlight shifts from pageantry to policy, setting the stage for what is being touted as the “mother of all trade deals” between India and the European Union after nearly two decades of negotiations.The long-pending India–EU FTA is close to finalisation, with a formal announcement expected around the India–EU Summit on January 27 as New Delhi prepares to host the European Union’s top leadership for India’s 77th Republic Day celebrations. Both sides are also set to sign a security and defence partnership agreement to add momentum to the strong political ties, people in the know told ET Bureau.Underscoring the deepening engagement, a small military contingent from the European Union will participate in the Republic Day parade on January 26, marking the first time an EU force will take part in the event, the people said.The EU leadership will attend the celebrations as chief guests. President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen are scheduled to be on a state visit to India from January 25 to 27, placing trade, security and diplomacy firmly centre stage.The Summit will witness the announcement of conclusion of negotiations for the long-pending FTA that is expected to be signed in a few months after completion of legal procedures including endorsement by the EU Parliament.Formally, the Broad-based Trade and Investment Agreement (BTIA), would mark a strategic, economic and geopolitical turning point, not just for the two partners but for the global trading system itself. "This will be the mother of all deals," Commerce and Industry Industry Minister Piyush Goyal said last week.Commerce and Industry Minister Piyush Goyal’s description of the pact as the “mother of all deals” captures both its scale and its symbolism. With a combined market of nearly two billion people, the agreement would link two of the world’s largest democratic economies at a time when protectionism is on the rise and established trade routes are being disrupted.According to a report by the Global Trade Research Initiative (GTRI), the pact would be India’s largest and most complex trade agreement to date, spanning goods, services and trade rules across the EU’s 27-member customs union.The EU is among the world’s richest markets, with 450 million consumers and an economy valued between €18 trillion and €22 trillion. It is also a market where Indian exporters lost ground after the EU withdrew Generalised System of Preferences (GSP) benefits in 2023.Negotiations between India and the EU began in 2007 under the banner of a Broad-based Trade and Investment Agreement (BTIA), but stalled repeatedly over contentious issues such as automobiles, wine and spirits, data rules, public procurement, intellectual property and labour standards.Talks were effectively frozen after 2013.The revival came in 2022, amid a sharply altered global trade environment.Rising protectionism, tariff shocks triggered during Trump years, supply-chain disruptions and Europe’s push to diversify away from China injected new urgency.Both sides narrowed ambitions, parked the most politically sensitive areas, most notably agriculture, and refocused on an “executable” deal rather than an all-encompassing one.Reflecting this shift, the agreement is now officially termed the India–EU Free Trade Agreement. Investment protection and geographical indications are being negotiated separately, rather than bundled into a single mega-treaty......Read more at:https://economictimes.indiatimes.com/news/economy/foreign-trade/india-eu-fta-big-billion-dollar-trade-deal-may-be-the-real-show-this-77th-republic-day/articleshow/126766551.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst (ICE MUMBAI)

Fonte notizia: The Economic Times