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Exclusive | FTA can lower reliance on China, Russia, US: EU foreign policy chief

Ahead of Jan 27 signing of security partnership, Kaja Kallas says EU is a reliable partner, Russia is not

EU foreign policy, European Union (EU), European Commission, Kaja Kallas, Kaja Kallas interview, India-EU Free Trade Agreement, India-EU FTA, free trade agreement (FTA), Indian express news, current affairsKaja Kallas, Vice President of the European Commission

Ahead of the state visit of the European Union leaders from January 25 to 27, High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission Kaja Kallas said Friday that the India-EU Free Trade Agreement is a “strategic choice” and provides a chance to reduce reliance on China, Russia and US.

In an exclusive interview to The Indian Express, Kallas, former PM of Estonia who also holds the rank equivalent to Foreign Minister, said that the EU and India will sign a new Security and Defence Partnership on January 27 at the India-EU leaders’ summit. She will attend the summit.

European Commission’s President Ursula von der Leyen is expected to arrive in India Saturday and European Council’s President António Luís Santos da Costa reaches Sunday.

Both are chief guests at the Republic Day celebrations on January 26 and will attend the summit on January 27.

Edited excerpts:

How do you view the arc of India-EU bilateral relations, from the first India-EU Summit in 2000 to the first invitation to EU’s leadership in 2026 for the Republic Day celebrations?

We began with dialogue and cooperation (and) today, we act together on trade, security and technology. The invitation to EU leadership to join Republic Day is a great honour and reflects genuine trust. India is no longer merely an important partner: it is a major strategic partner. This is a qualitative shift.

How does the India-EU FTA strengthen economic relations?

The FTA will create a market for 2 billion people, which accounts for about one-fourth of global GDP. The deal will boost investment and growth, strengthen supply chains and open new opportunities for companies on both sides. It also provides a chance to reduce reliance on China, Russia and the United States. At a time when free trade is under pressure and supply chains are being weaponised, deepening our economic partnership makes perfect sense. This agreement is a strategic choice.

India and EU have also stepped up on defence and security. Can Europe be an alternative to Russian defence equipment?

One only has to watch the news to see that the world is becoming more dangerous, so making the EU-India defence cooperation deeper is a natural step. Both EU and India are increasing defence spending because global events demand it. Next Tuesday, EU and India will sign a new Security and Defence Partnership. It will expand our cooperation in areas such as maritime security, counterterrorism and cyber-defence.

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We also want to scale up defence industry cooperation. India is a sovereign nation and will make its own choices about procurement. But one thing is clear: Europe is a reliable partner, Russia is not.

India and EU have had differences over the Russia-Ukraine war, and now India feels that it has been selectively targeted by 50 percent tariffs by the US. How do you respond to those concerns?

Russia’s war against Ukraine poses an existential threat to Europe. Just as India considers its national interests, so does the EU. I have said before that India’s energy and defence ties with Russia cast a shadow over our cooperation. Europe is completely phasing out imports of Russian fossil fuels, because we have learned the hard way that Russia uses energy for political blackmail. Fossil fuel sales remain a major source of income funding its war, so less money for Russia means less war. A world in which borders can be changed by force is dangerous for all of us, including for India. I discuss such issues regularly with my Indian counterparts. These conversations are candid and respectful.

How does the EU view the China challenge, especially its assertive behaviour in the Indo-Pacific as India has faced it along the contested border and its neighbourhood?

Europe has major stakes in the Indo-Pacific, and we are acting accordingly. The EU is a major economic partner for many countries in the region. We also have Security and Defence Partnerships with Japan and South Korea. We all share an interest in keeping the region free, open and rules-based.

When it comes to China, we must acknowledge that our economic decisions directly affect our security. China weaponizes trade, supports Russia’ war in Ukraine and acts aggressively in the South China Sea. While China is a major trading partner, we cannot allow our economic relations to come at the expense of our security. That is why the EU has put in place our own economic security strategy. We have a robust trade defence toolkit, from stronger foreign-subsidy and investment screening to anti-dumping duties. We are also taking steps to better shield critical infrastructure.

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How do India and the EU work together on cutting-edge technologies, including Artificial Intelligence, semiconductors and supply chains resilience?

Technology is reshaping the world, and India and Europe have a greater chance to shape that future when we work together. The EU-India Trade and Technology Council can help align our approaches to critical technologies. We can bring policymakers, start-ups and industry together to shape standards and reduce dependencies.

With the US becoming unpredictable as a destination for Indian students and professionals, what is EU’s policy towards Indian students, professionals, businesses and tourists?

Indian students, professionals and entrepreneurs contribute greatly to Europe’s economies and societies. We want to deepen mobility, skills partnerships and ties between our peoples. A strong partnership is not built by governments alone; it is built by citizens. I would want to see closer ties between our peoples.

Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism ‘2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury’s special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban’s capture of power in mid-August, 2021. ... Read More

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