Donald Trump’s return to the White House and the trade war between the US and China have put India’s medium Eastern European Economic Corridor (IMEC) in the spotlight.
Officially launched at the G20 Summit in Delhi in 2023, the logistics corridor project aims to promote trade in goods, energy and data.
This new trade route bypasses the Suez Canal and connects Europe to India through Israel and the Gulf monarchy.
“We need corridors like this more than ever, because we have to deal with issues with China, as well as the fact that we are currently in regional competition between the US, China and Europe,” MEP Morten Løkkegaard (Renew Europe/Denmark) told EuroNews.
“Production in India is much closer to Europe than in China,” and reducing delivery times will add the Vice-Chair of MEP Niels Flemming Hansen (EPP/Denmark) and the European Parliament’s delegation for relations with India.
There are several entry points to Europe in the table. This is the port of Piraeus in Greece, Marseille in France, and Trieste in Italy.
“IMEC should be thought of as a network, not a line, so if it is based on different entry points, its own resilience and ability to withstand disruption will increase considerably,” says Alberto Rizzi, a policy researcher at the European Council of Foreign Relations (ECFR).
“It appears that France is ahead of other European political parties,” added Ritzi.
Competition with China?
According to Rizzi, not all participating countries have the same motivation. In addition to improving access to the European and Gulf markets, India is looking for ways to escape China’s siege strategy.
Gulf monarchies see an opportunity to position themselves at the heart of future trade in commodities and energy.
The European Union aims to reduce dependence on China through risk-taking strategies.
“It is also a way to bring about India’s potential, not just the world’s largest democracy, but the most populous country and a huge commercial and industrial partner that is close to the European trajectory,” explained Ritzi.
The new spice route is seen as a way to compete with the new Silk Road project launched by Beijing, but researchers doubt its ability to rival China’s economic corridor.
“The new Silk Road is a global initiative by China that essentially encompasses the whole world, so IMEC should not be considered a competitor, but IMEC has an important regional aspect.”
“We should not see our commitment to IMEC as a way to close China’s doors, especially in Gulf countries.”
The Israeli Hama War in Gaza slowed down the new Spice Route project, but it appears to be enjoying new interest now.
The European Union and Gulf countries are not the only ones to court the Asian giants. The US is boarding to negotiate a bilateral trade agreement between Washington and New Delhi, as evidenced by Vice President JD Vance’s recent trip to India.
