EU-India FTA Called “Mother of All Deals” by Lithuanian Envoy

New Delhi: Lithuania’s Ambassador to India, Diana Micevicienė, has described the European Union-India Free Trade Agreement (FTA) as a “historic” and transformative pact, calling it the “mother of all agreements.” She highlighted the scale, scope, and geopolitical significance of the deal in a special interview.

The ambassador emphasized that this agreement goes far beyond a standard trade arrangement. “It is a pact between two of the world’s largest trading blocs and two vibrant democracies,” she said. According to her, the FTA sets a model for building trade relations among democratic nations amid global uncertainties.

Diana Micevicienė pointed out the vast opportunities the agreement creates for businesses on both sides. She noted India’s growing role in global supply chains and said the FTA will further strengthen this position. Strengthening economic ties with the EU, a key pillar in global supply networks, is strategically important for India.

The ambassador described the EU-India FTA as unprecedented in terms of its size and openness. She acknowledged India’s significant progress in trade engagement and expressed optimism about the bright future of economic relations between the EU and India.

Speaking about Lithuania’s gains, she stated that despite being a small economy, Lithuania has experienced strong growth over the last two decades as part of the EU’s single economic area and free trade framework. A partnership with a major economy like India is expected to enhance these benefits further.

Currently, bilateral trade between Lithuania and India stands at around €400 million annually, which the ambassador believes is far below its true potential. Several sectors covered under the FTA are expected to see increased trade. Lithuanian authorities plan to inform traders about reduced tariffs, simplified procedures, and better market access.

She also mentioned Lithuania’s strong purchasing power, with per capita income around €29,000–30,000, noting that Lithuanian consumers are eager to access high-quality Indian products.

The ambassador described the unprecedented market access offered by the agreement as its most historic aspect, highlighting its unique openness for both the EU and India.

In the context of global trade tensions and US tariff policies, the EU-India FTA is seen as a strong and reliable alternative. She pointed out that actual trade levels between the EU and India have not yet matched their potential, despite accounting for nearly one-third of each other’s global trade.

Regarding possible challenges in implementing the FTA, the ambassador expressed confidence due to the exceptional political will on both sides. She mentioned that technical cooperation, including customs coordination and institutional collaboration, will enhance interoperability between EU and Indian bodies.