Strengthening free trade over submission: The urgent need for Europe to exhibit greater assertiveness now
The European Union (EU) is actively engaged in negotiations with several countries, including Indonesia and India, as part of its broader trade strategy.
Foreign Minister Johann Wadephul (CDU) has called for the conclusion of talks with Indonesia, indicating a strong interest from the EU side. The proposed free trade agreement with Indonesia is not explicitly named in the search results, but it is clear that EU trade negotiators, led by figures such as MaroΕ‘ Ε efΔoviΔ and accompanied by EU Commissioners like Christophe Hansen, are in discussions with Indonesia, among other countries.
Indonesia, with a population of 280 million and a highly dynamic growing economy, presents a significant opportunity for the EU. The country's potential in a free trade agreement is not lost on the EU, with both parties believing there is much to gain from such an arrangement.
Meanwhile, the EU is also considering resuming negotiations with Australia. However, a recent development has seen the EU abandon negotiations with Australia in 2023.
India, the largest democracy and, since this year, the fourth-largest economy in the world, is another key focus for the EU. The Indian economy has grown by around 50 percent since 2017, making it an attractive prospect for a potential free trade agreement. The geopolitical significance of India also lends weight to the priority given to this agreement.
The German Industry and Commerce Chamber considers a trade deal with India an "absolute game-changer." In 2017, the Bertelsmann Foundation estimated that a EU free trade agreement with India would result in an annual wealth gain for Germany of almost 4.6 billion euros.
While negotiations with Indonesia and India are ongoing, the EU has already presented a trade agreement with the South American Mercosur states for ratification. The EU is also planning to start a free trade agreement with India immediately.
In conclusion, the EU is actively pursuing potential free trade agreements with several countries, including Indonesia and India, as part of its wider trade strategy. The benefits of these agreements, both for the EU and the potential partner countries, are significant and could lead to substantial economic gains.
