Germany’s chancellor has thrown his weight behind a rapid expansion of the EU’s global trade network, saying a long-discussed free-trade deal with India could be signed within weeks.
Speaking during an official visit to India on Monday, Friedrich Merz said European Commission President Ursula von der Leyen and European Council President António Costa may travel to New Delhi before the end of the month to finalise the agreement.
Germany doubles down on free trade
Merz’s comments come just days after most EU countries approved the controversial Mercosur trade deal with South American nations — an agreement Germany strongly supports as Europe tries to reduce its reliance on the US and China.
He warned that global trade is moving in the wrong direction.
“We are seeing a return of protectionism,” Merz said, calling it a threat to open markets and free trade. He added that EU leaders are eager to take “another major step forward” by sealing a deal with India soon.
Talk of an EU-India summit in January has been circulating in Brussels since late last year, after plans to close negotiations by the end of 2025 fell through.
Merz described India as “the fastest-growing economy in the G20” and a crucial partner for Europe in the Indo-Pacific region.
Tough negotiations behind the scenes
Trade talks have intensified in recent weeks. India’s commerce minister, Piyush Goyal, was in Brussels last week for meetings with EU trade chief Maroš Šefčovič, who has previously described Indian negotiators as hard-nosed and demanding.
Both sides are under pressure. The US has raised tariffs on several partners, while China has increasingly used its control over raw materials and technology as political leverage.
One of the biggest hurdles remains environmental standards. The EU wants strong sustainability rules backed by a formal dispute-resolution system — something India has been reluctant to accept. New EU climate measures, including the Carbon Border Adjustment Mechanism introduced in 2023, have also been a major sticking point.
Even so, Merz said he believes talks are now in their final phase and that a deal would send a positive signal about Europe’s commitment to global trade.
France bristles at Europe’s trade push
Not everyone in the EU is on board. Europe’s broader trade strategy has triggered political unrest in France, which opposed the Mercosur agreement over fears that cheap agricultural imports could hurt French farmers.
Von der Leyen is expected to travel to Paraguay on 17 January to formally sign the Mercosur deal, according to earlier reports — a move that has already fuelled backlash in Paris.
French President Emmanuel Macron is facing growing pressure at home, with both far-right and far-left parties threatening to challenge his government in a vote of no confidence over the agreement.
As Europe races to secure new trade partners, the push for open markets is proving just as politically risky at home as it is strategically important abroad.
