Problems where there is a convergence would be included in the first part of the agreement. They aim to conclude the second part by the end of this year.
The discussions for the previous round (tenth) have concentrated on areas such as market access offers in goods, services, investment and government purchases.
India has followed the practice of negotiating commercial pacts in two phases with Australia. He follows a similar approach to the United States.
Commerce secretary, Sunil Barthwal, said last month that “if some of the problems that may not be very fundamental to trade, perhaps take a little more time, then it is better to focus on basic business issues. So we say first … We also discuss with the EU which can be the early harvest of the first tranche, where we can do more quickly”. The secretary, on May 10, held an exam meeting on the pact with senior officials involved in the negotiations. In addition to requiring significant rights reductions in cars and medical devices, the EU wishes a tax reduction in products such as wines, spirits, meat, poultry 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.
On May 1, the Minister of Commerce and Industry, Piyush Goyal, was in Brussels to discuss the progress of the agreement.
In June 2022, India and the EU block in 27 countries resumed negotiations after a gap of more than eight years. It was blocked 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 conclude a highly anticipated free trade agreement by the end of this year.
Negotiations of the India-EU commercial commercial cover cover 23 political areas or chapters, in particular trade in goods, trade in services, investment, health and phytosanitary measures, technical obstacles to trade, commercial appeals, rules of origin, customs and trade facilitation, competition, commercial defense, the purchase of government, settlement of disputes, intellectual property rights, sustainable development.
The bilateral trade of India in goods with the EU was 137.41 billion USD in 2023-24 (exports – USD 75.92 billion, imports – 61.48 billion USD), making it the largest trading partner for goods.
The EU market represents around 17% of the total exports of India, while exports to India represent 9% of its total exports.
In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at 51.45 billion USD.
The two parties negotiate a free trade agreement, an investment protection agreement and an agreement on geographic indications (GIS).
India and the United Kingdom announced on May 6 the conclusion of negotiations for a free trade agreement.
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