"We are close to reaching a deal," Danish Ambassador to India on EU-India trade negotiation

New Delhi [India], August 8 : Denmark's ambassador to India, Rasmus Christensen, said that the European Union and India are close to making a trade deal, which is a testament to the fact that India is not a "dead economy," as touted by US President Donald Trump.

In an interview with Christensen the diplomat said that Denmark sees India as a promising place to invest.

"I certainly do not see India as a dead economy. On the contrary, it's world's fastest growing economy. And I think a testament to that fact is that the EU and India is negotiating a free trade agreement. I think that will be mutually beneficial," Christensen said.

He said that Denmark views India as a promising place to conduct business, which contradicts Trump's claims.

"So certainly from a Danish European perspective, we see India as a very promising place to invest and do business with. And that would not be the case if it was a dead economy," the Danish envoy said.

He further said that though Denmark holds the rotating presidency of the European Union, all trade policies are thoroughly discussed among all member states and the EU is currently interested in exploring options to invest in India.

"Indeed, Denmark currently holds the rotating presidency of the European Union. Although when it comes to trade policy, as we discussed, it's a responsibility of the EU Commission. But I think we do see a very significant momentum now in the negotiations between the EU and India, probably for all kinds of reasons. Certainly, the EU is also very interested in diversifying its trade relationships," he said.

The Ambassador further said that India is an important player in trade with the EU and that now there is an urgency now to conclude the trade agreement.

"India is an important player. And I think the same goes for India. So maybe the reason why we have been negotiating for so long was a certain lack of urgency. But I think the urgency is there now. And whether we can conclude it during our presidency in November or December, or whether it comes slightly later, nobody knows," Christensen said.

"But I think we are close to reaching a deal. And I remain confident that we will reach a deal," he added.

When asked if Europe saw India as a counterbalance to China, Christensen said that Europe is farther away from Asia, and now Europe is realising the downside of having to depend on one country for certain goods.

"Of course, Europe is, in that sense, we are kind of a little bit far away from the Indo-Pacific. But I think if you look at it from a geoeconomic perspective, certainly in Europe, there is a growing realisation that, again, we need to diversify our economic partnerships. I think in Europe, in the past couple of years, I think we have also come to realise the reliance we have on one country in particular when it comes to imports of certain goods," he said.

Christensen said that the EU is looking to diversify their trade ambit, noting that very few countries could contribute what China did through exports.

"And we would like to diversify that. We will, the Europe will keep trading with China, but we would like to increase our trade with others and make sure that our supply chains are more diversified, that we can get access to goods, manufactured goods, whatever from different places. And I think, to be very honest, there are very few countries that could deliver what, for example, China has delivered to the global economy," he said.

He futher noted that India is seen as the best alternative to China.

"And India is probably the best example of that. So that's why, if you're sitting back in Brussels or Copenhagen or the European capitals and look out into the world, India is probably the upcoming alternative to what we've seen. So therefore, we will invest here," he said.

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