Time is high, time is good to develop EU-India FTA: German envoy

New Delhi, Apr 2 (PTI) Underling that imposing tariffs on goods is "not to our liking", German Ambassador Philipp Ackermann here on Wednesday said "time is high, time is good" to develop the EU-India free trade agreement.

On the sidelines of an event, he was asked about the "reciprocal tariffs" announced earlier by US President Donald Trump, which would come into effect on April 2.

Trump had recently said that reciprocal tariffs on countries that impose levies on American goods will kick in on April 2.

"As you certainly know, Germany and the European Union are promoters of free trade, we are sitting together in trying to develop a free trade agreement with India, to shape it, negotiate it.

"So, it goes without saying that imposing tariffs on goods is not to our liking, we have made it very clear that we think it's not the right way," the envoy said, during an interaction with a group of reporters.

But, it's the "discretion of any country" to shape its economic policy, Ackermann said.

"I don't foresee this as a great success in trade policy, international trade policy, but I think, the good reaction is to...or the right reaction is to...when big markets... India is one, European Union is one, sit together and try to reduce tariffs, as it is done in a free trade agreement," he said.

The German ambassador emphasised that "time is high, time is good to develop the free trade agreement and to shape it, and negotiate it as quickly as possible, between India and the EU".

Prime Minister Narendra Modi and European Commission president Ursula von der Leyen in February had issued directions to conclude the ambitious free trade agreement by the end of this year as the two leaders vowed to expand the India-EU strategic partnership in areas of defence, security and critical technology.

In his media statement after talks with Von der Leyen, Modi described the India-EU strategic partnership as "natural and organic" and one that is based on "trust" and shared belief in democratic values.

Asked if Germany was hopeful of the EU-India FTA being negotiated by the end of this year, the envoy expressed that he was "quite confident" of it.

"In all honesty, you have the president of the Commission of the European Union, and the Prime Minister of India, sitting together and saying that we commit ourselves that by the end of 2025, this agreement is negotiated and ready to be put on the table.

"Now, that's an imperative for which we have to... It comes from the top level, and that's where we want to see it. So, I am quite confident," he said.

Asked how Germany looks at the EU-India FTA prospects, the envoy said, "We think it is a game-changer for our business in India and you will see more investment, no doubt".

On the bilateral ties between India and Germany, the envoy said, "We will continue our focus on India, continue to work together with India, we looking forward to intensifying our relationship in the years of come". PTI KND RHL

Source: PTI