EU chief Ursula to make India first pit stop in her new term

Ursula von der Leyen will make India the first pit stop in her second term, the European Commission President said in an address at the World Economic Forum (WEF) in Davos on Tuesday.

The announcement comes a day after Donald Trump returned to the White House for a second-term, bringing along his protectionist policies and ‘America First’ agenda.

Von der Leyen’s speech reflected the European Union’s (EU’s) strategic shift to build relationship with emerging economies, especially in the Asia-Pacific, amid Trump’s tariff threats against the EU.

“The first trip of my new commission will be to India. Together with Prime Minister Narendra Modi, we want to upgrade the strategic partnership with the largest country and democracy in the world,” Von der Leyen said.

Her second stint at the helm of the EU began in July, when she was re-elected by the European Parliament.

The EU President’s announcement also comes a few days after Indian trade minister Piyush Goyal met with European Commissioner for Trade and Economic Security Maroš Šefčovič at the WEF. The two leaders agreed to form a new framework for an expedited, robust free trade agreement (FTA).

New Delhi has been actively pursuing FTA with the EU but issues such as tariffs, market access for European goods, data protection, and intellectual property rights have been sticking points.

India and the EU have had an important partnership for decades, with both facing shared challenges like climate change, public health, and global security, making it essential for them to work together.

EU scrambles amid Trump’s tariff threats

The global political landscape is being reshaped by rising protectionism, increasing trade barriers, and growing emphasis on self-reliance – with Trump’s US leading the way.

Since his re-election last November, the Republican has threatened to tax EU goods entering the US. He has been blunt about how the EU was “very, very bad to us. So they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”

Von der Leyen has taken swift action on trade on the heels of Trump’s threats.

In December, she finalized a long-awaited deal with the Mercosur, a South American trade bloc that include Argentina, Brazil, Paraguay, and Bolivia.

Last week, the EU updated its trade agreement with Mexico, and on Monday, it resumed trade talks with Malaysia after more than 10 years.

‘A lot is at stake for both sides’

Meanwhile, Von der Leyen in her Tuesday speech stopped short of mentioning Trump, but spoke about rising use of sanctions and tariffs in a bid to guard national interests.

“We will need to work together to avoid a global race to the bottom,” she said. “Because it is in no one’s interest to break the bonds in the global economy. Rather we need to modernize the rules to sustain our ability to produce mutual gain for our citizens.”

However, addressing the looming trade issues between the EU and the US, Von der Leyen agreed that “a lot is at stake for both sides”.

“So, our first priority will be to engage early, discuss common interests, and be ready to negotiate. We will be pragmatic, but we will always stand by our principles. To protect our interests and uphold our values – that is the European way,” she said.