Belgian Prime Minister Bart De Wever said Europe needs to reduce its dependence on foreign trade partners, warning that economic ties can be used as leverage. He also said India had warned European countries about these risks much earlier.
Belgian Prime Minister Bart De Wever has said Europe is undergoing a “rude awakening” over the risks posed by trade and industrial dependencies, acknowledging that India had warned European nations about the issue much earlier but was not heard.
Speaking at a CII event, De Wever said India and Europe were facing similar challenges as economic dependencies increasingly become tools of leverage in global trade and geopolitics.
‘Europe is listening now’
De Wever said countries were increasingly dealing with powerful global blocs whose actions could undermine their economic and strategic interests.
“We face the same challenges. We are confronted with the same power blocks that are going in a certain direction, a direction that we maybe do not like and we do not like to be pushed around. We do not like dependencies becoming weaponized against us,” he said.
He pointed out that India had recognised the risks associated with excessive economic dependence much earlier than Europe.
“You have lived this history. Your prime minister warned Europe about this long time ago already, but he was ignored. He wasn’t listened to. We are listening now. It’s a bit late maybe in Europe this awakening, but it is happening,” De Wever said.
Belgium PM takes veiled swipe at China
Describing Europe’s experience with trade and industrial dependencies as a “rude awakening”, De Wever said the continent had allowed foreign overcapacity to enter its markets at prices below production costs, weakening its own industrial base.
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“The country that has profited most from that practice does not lie very far from here. It’s a neighbor you all know. And India saw this earlier than we did and they warned us and we didn’t listen,” he said, in an apparent reference to China.
‘India is number one’ strategic partner
Asked why India and Europe could build a durable strategic partnership amid growing economic fragmentation, De Wever said Europe needed partners committed to multilateralism and cooperation based on “respect and not force”.
“If India is not on that list then you have missed something very fundamental. India is on that list. It’s number one,” he said.
De Wever described India as the world’s largest and fastest-growing economy, highlighting its large talent pool and potential for cooperation in areas including trade, investment, technology and supply-chain resilience.
He said India’s growth trajectory presented opportunities that differed from those offered by more mature economies such as Japan.
India, Europe need diversified trade
The Belgian prime minister said India and Europe should work towards diversifying their trade relationships and building partnerships with countries that honour their commitments.
At the same time, he stressed that openness to global markets should not come at the cost of ignoring strategic dependencies.
“Defending our national interests is essential to maintaining the trust required for free trade,” De Wever said.
‘India is a major democratic power’
While acknowledging differences in the histories, institutions and strategic outlooks of India and Europe, De Wever said the two sides shared important areas of convergence.
“India is a major democratic power, a leader in innovation, a voice that cannot be missing when a free and prosperous world is shaped,” he said.