00:00Commissioner, the deal with India, finally it's happened.
00:03It's been sealed, signed.
00:05What are the benefits for the European industry?
00:07I think that first and foremost, you have to say this is really mega deal.
00:10I mean, we're talking about the massive agreement between the two of the largest economies on this planet.
00:17So we are creating the market for almost 2 billion customers with a massive trade.
00:21And I think the major benefits for European companies is that first and foremost, by really cutting massively the current tariffs,
00:31we are opening new sectors, which until now are completely close to the European exports.
00:36And in terms of the tariffs, because they have been cut across the board.
00:40Obviously, this is a country and a market that was very protected by the Indian authorities.
00:44When do you expect the impact of this deal?
00:46Of course, because ultimately it's about what you can deliver to be really felt and seen by European companies.
00:52Because we are really talking about the respective cut in tariffs by 97 to 99 percent.
00:57And we discussed it was actually last point on negotiations with my good friend and colleague,
01:04Trade Minister Piyush Goyal, that we need to implement it as soon as possible.
01:07So we'll try to accelerate the ratification process on both sides.
01:11So hopefully by 2027, both the businesses in India and Europe can already benefit from this very important agreement.
01:19So you expect this deal to be operational by next year?
01:22It's a matter of months.
01:23That would be a strong preference, yes.
01:25And do you think you can get that done?
01:26Obviously, there's a process that will come with it.
01:28Of course.
01:28It's not always easy.
01:29Of course.
01:29So this is what I was explaining yesterday.
01:32We need to do legal scrubbing.
01:33We need to do our European translations.
01:35But I would say that current trade turmoil on the global scene is really requiring us to move much faster to really speed up the processes.
01:47And I will do my best to talk with both member states in the Council and European Parliament that this deal really merits special attention.
01:55And we need to do it as fast as possible.
01:57And, Commissioner, what made the Indians finally agree to this?
02:01Because you tried multiple times, never quite worked at the end of last year.
02:05It seemed like it was almost there, but didn't really manifest.
02:07What do you think made the Indians go, this is the right time, we cannot waste more time?
02:11I think that last year, and I felt clearly the needed attention from both sides.
02:18We created the momentum by the visit of the College of Commissioners to New Delhi last year.
02:24And we both understood that the relationship between the European Union and India is really strategic.
02:29That simply, I would say, the cooperation between us, opening of the commercial and trade ties will really create huge opportunities for both of us.
02:39So, I think what did the trick in the end was that we started the new philosophy.
02:43We've just been very clear about the fact that if this is sensitive for you, let's not touch it.
02:48Okay.
02:48That's a game changer in a way.
02:49Because when we look at the red lines, they have said that agriculture, that's a market where their local producers will always go first.
02:57The same applied, obviously, to dairy and grain.
02:59So, the new approach from the European Union will say, if it's delicate, we don't touch it.
03:03Let's look at the other opportunities.
03:04Exactly.
03:04Exactly.
03:06So, and we both agree that from our side that we would treat as Indian-sensitive commodity the dairy and rice.
03:16And from their side towards us, it's our traditional commodities like beef, like sugar, and poultry.
03:27And you say this is the mother of all trade deals because of the access to a market of, well, more than a billion people, ultimately.
03:34But are there any regrets?
03:35Something that you wish, I wish we'd gotten this in the deal, but we couldn't make it in the end.
03:40I think you cannot work with regrets here because it's a very complex agreement.
03:43So, I think, I mean, we had lots of interaction with our Indian partners also during this visit to India.
03:52Everyone is very pleased, and I can say that it's also on the other side.
03:58The fact that current trade, which is on the level of 180 billion euros, can be multiplied and doubled already within five, six years.
04:08That the number of jobs which the European companies are creating in India, and the number is already huge, 3.7 million,
04:15could be also multiplied, as well as job in Europe, because more than 800,000 people have currently the jobs in Europe thanks to the exports to India.
04:25So, all these are such significant numbers that, in the end, there are no regrets.
04:29And I think that we also looked to the future.
04:32So, we made this agreement as future-proof as possible because we know that India is a very dynamic market.
04:38They have growth between 7% to 8%, and we agreed that we will have regular review clauses.
04:43How can we further improve that agreement?
04:46What fear has been confirmed, what concerns are really materialized, and what we can improve?
04:51And I believe that this would be such an ongoing process because we both want to be part of our own successes.
04:56And how much of an impact did President Trump have on the timing of the deal?
04:59Because the Indians are operating under a 50% tariff regime.
05:03They themselves say that it's incredibly difficult to do business with the United States in that context.
05:08It's almost impossible at 50%.
05:10How much of an impact do you believe that tariff threat had on this deal?
05:15I have to say, as I already recall certain times, that indeed, my phone is ringing all the time
05:21because everyone feels that true partnership in the field of trade and economic cooperation these days is very important.
05:32That everyone wants to hedge against the instability, and I believe that this strive for predictability, for stability, for mutually advantageous deal is very strong.
05:42And I felt it from our Indian partners that they clearly felt it from us because, I mean, for both of us, this is a win-win agreement,
05:49and I'm sure that it will bring us better sleep in the night, more opportunities for tomorrow, and we are completely opening a new chapter in our mutual relations.
05:58And Commissioner, is there value in being polite, respectful, perhaps not calling your partners weak and decaying?
06:04Does that change something at the negotiating table?
06:07I think it was always my style, and being from the small country, and India, of course, is a big, big country,
06:15but being from the small country, I know how it is appreciated, where you are polite, where you listen to your partner concerns,
06:22and when you want to put yourself in your partner's shoes, because in the end, the good deal is when both partners are happy,
06:31when you do not feel pushed, pressured, and when you sell it with a positive attitude,
06:35and I believe that this is happening right now.
06:37And we have multiple level relationship.
06:42There is excellent relationship between the leaders, both President von der Leyen and President Kostar here.
06:47They have cordial relationship with Prime Minister Modi.
06:50I'm on a regular talking basis, not only with the Minister of Trade, but also with Minister for External Affairs,
06:57with Madam Minister for Finance, and many colleagues.
06:59So I think we kind of created the platform and the fabric, which I believe will help us very much in the future
07:06to get the best possible effect from this deal.
07:09And just as two final questions, of course, the European Union cut a deal,
07:13and you talk about this turmoil in global markets with the United States for 15%.
07:17As you know, that deal was criticized.
07:19You continue to defend it, and you say it was the best possible deal.
07:23But of course, we saw with Greenland, there was this threat of another 10%.
07:26Do you believe, really believe, that you have stabilized the relationship when it comes to the U.S.,
07:30or actually, this is going to be an ongoing process?
07:33I think that, again, I would quote the President of the European Commission, my boss,
07:40that the deal is a deal.
07:40This is how we approach it.
07:43So what's final?
07:44A deal is a deal.
07:44A deal is a deal.
07:45This is how we approach it, and we want to implement it.
07:49I'm convinced that under the circumstances we negotiated, it was the best deal possible,
07:54and I can compare the notes with many of my colleagues, and I'm still very strongly behind that statement.
08:00But we've been also very clear that if it comes to territorial integrity, sovereignty.
08:06You're not weak.
08:07Of course, that we are not weak.
08:08It's very important for us.
08:10And on this question, there is absolute and total European unity.
08:13And finally, you have a portfolio now that is strategic for the European Union.
08:18Some would argue you've become now one of the most powerful men in Brussels.
08:22I'm not sure if you take that as a good thing, or actually, it's going to keep you up at night.
08:26But the goal now is to turbocharge trade relationships.
08:29Go and conquer new markets and do it fast.
08:32What's next for the European Union now?
08:33I think if we look at the last year, indeed, I can say that our trade policy was turbocharged.
08:40I would just highlight the fact that we managed also very difficult negotiations with Switzerland and agreements.
08:49We are opening some new opportunities with the UK.
08:52I am traveling there already next week.
08:54But I think a very remarkable and good agreement we concluded with Indonesia, the biggest Muslim country.
09:02And again, they are extremely pleased.
09:03And we are as well with the results.
09:06We concluded the agreement with Mercosur.
09:08Now we have this mega deal with India.
09:14And, of course, we still have a very, very active agenda.
09:17We are talking to the GCC countries.
09:19We are talking to the countries of Southeast Asia, like Philippines, Thailand, Malaysia.
09:24And I know that also Australians are interested in relaunching and fast-tracking the negotiations.
09:32So we are permanently in negotiations with multiple partners.
09:36Do you call them or do they call you now?
09:38I think that we had many of these agreements on the table, how it was with India for 10 years.
09:47But I think that the last year, I mean, we both felt, you know, let's look at it again.
09:53Does it really have to take so long?
09:55Cannot be, actually, cannot we be, let's say, more flexible from the both sides?
10:00And it happened.
10:01And one example I can say that after we concluded the negotiations and we flew, it was our first foreign trip with my new portfolio to Mondeville.
10:12Then over the Christmas, we negotiated the deal with Mexico.
10:16And I hope that, again, it will be fully ratified before the summer break.
10:20So we have a series of the big deals with very strong, big economies.
10:25And I think it just reflects that Europe as a biggest trader has a good reputation, that we are credible, we are stable.
10:33And we always conclude the deals which are good for both parties.
10:37And I can demonstrate on the numbers that there is not one single free trade agreement which we signed, which didn't lead to dramatic increase of trade, investment, and is good for both of us.
10:49So we are happy without the trade deals.
10:51And that's, I think, the invitation and calling card for others.
10:54Let's do the deal with Europeans.
10:55So you don't think it's the end of the multilateral trade?
10:57No, I'm absolutely convinced that this will continue.
10:59Some argue it is.
11:00We're going back to very rough, tough politics.
11:03That's true.
11:04I mean, I don't think that I personally work in such a rough season, especially in trade, very strong transactionalism.
11:14But I think that through this new partnership, we are kind of providing the counter argument to this might makes right to the power politics, which is so present in a global discourse right now.
11:27And I see how our partners value the partnership and fair approach.
11:32Well, we'll be seeing you around the world then on that note.
11:34Commissioner, thank you very much for joining us.
11:36Thank you very much for having me.
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