India-EU trade deal likely to finalise by year-end, says Finnish ambassador

Finland's Ambassador to India, Kimmo Lhdevirta, expressed confidence on Monday about finalising a much-awaited trade deal between India and the European Union (EU) by year-end.

The ambassador inaugurated the honorary consulate of Finland in Ahmedabad.

Kulin Lalbhai, a prominent businessman from Gujarat and Vice Chairman of Arvind Ltd, has been appointed as the Honorary Consul of Finland.

The Finnish ambassador termed as "historic" the visit of the European Union College of Commissioners to India in February, stressing for a solution agreeable to both parties.

"It was a really historic visit, and I think it also created very good momentum for the negotiations to go ahead. I think both leaders on the European side and India are now committed to the goal of having an agreement by the end of this year," he told reporters.

 

Admitting that a lot of work needs to be done, Lhdevirta emphasised there is a good chance to achieve this goal.

"At the moment, I would say that the momentum and the prospects are very good," he added.

Lhdevirta said the overall annual trade between India and Finland is nearly 3 billion Euros.

When asked about Finland's views on the outcome of the trade deal, he stressed "meaningful" tariffs on industrial goods.

"Well, from our side, of course, a meaningful tariff level for industrial goods is very important. But it is of course important to reach a solution which both sides feel is just and beneficial. So, finding the balance is the key. But I don't want to go into more specifics here. It's up for the European Commission (to decide)," he said.

He said a Finnish business delegation led by him will meet the representatives of the Gujarat government on Tuesday, and added that several Finnish companies are interested in investing.

He said the honorary consulate reflects the deepening partnership between India and Finland and growing business interest.

"Nearly 10 Finnish companies are already present in Gujarat. Our cooperation has focused on energy, but today, Finnish companies are engaged across multiple sectors: clean energy, circular economy, skilling, smart infrastructure, and sustainable design. Gujarat offers an ideal environment for these collaborations to flourish," the ambassador said.

He said Finnish companies are contributing to Gujarat's growth and development goals through world-class technologies, sustainable solutions, and investments.