New Delhi: In the midst of the American tariff war, India and the European Union (EU) explore the option of negotiating their free trade agreement (ALE) in phases in an “uncertain global trade environment” after the imposition of radical prices by US President Donald Trump. The negotiation of the FTA in two phases allows the two parties to first conclude the areas where the agreement can be concluded more easily and the complex problems can be treated at a later stage, according to an official source.
“After the visit of the president of the European Commission, Ursula von der Leyen, with the college of the commissioners of the EU or the high political leaders of the block here, the talks evolve in a positive direction and the momentum is also built. The free trade agreement will be in slices, explored there, “said the source.
Earlier, India followed the practice of negotiating these commercial pacts in two phases with Australia. “However, the two parties (India and EU) concluded the 10th round of negotiations in Brussels last month for the agreement proposed. The next series of conferences is expected in May here,” said the source.
According to commercial experts, the strengthening of economic ties between the two regions is crucial in the light of high prices imposed by US President Donald Trump on April 3. In June 2022, India and the EU block in 27 countries resumed negotiations after a gap of more than eight years. He stalled in 2013 due to differences on the market opening level.
On February 28, Prime Minister Narendra Modi and the president of the European Commission agreed to seal a highly anticipated free trade agreement by this year. Negotiations of the Commercial Pact India-EU cover 23 political areas or chapters, in particular the trade in goods, services, investments, health and phytosanitary measures, technical obstacles to trade, commercial remedies, rules of origin, customs and trade facilitation, competition, commercial defense and others.
In addition to requiring significant rights reductions in cars and medical devices, the EU wishes a tax reduction in wines, spirits and an intellectual property regime. Exports from Indian products to the EU, such as ready -to -use clothing, pharmaceutical products, steel, petroleum products and electric machines, can become more competitive, if the pact is successfully concluded.
The bilateral trade of India with the goods with the EU was $ 137.41 billion in 2023-24 (exports $ 75.92 billion, imports $ 61.48 billion), making it the largest trading partner in India. The EU market represents approximately 17% of the total exports of India, while EU exports to India represent 9% of its total exports.
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