Tackle obstacles not price

The search for solutions to combat non-tariff obstacles would be important for the free trade agreement (ALE) proposed between India and the European Union (EU) and the two parties are actively working on the resolution of these questions, said the Minister of Commerce and Industry, Piyush Goyal, Thursday, June 12, 2025).

He said that the two parties are “enough” about to finalize the talks of the free trade pact.

“Significant progress has been made. More than half of the chapters are ready. In terms of content, I would say that we are almost 90% ready for market access. The important problems to be solved are non -pricing obstacles and how we will make it smoother, easier and better to do business between the EU and India,” Goyal told Stockholm journalists.

He added that India and the EU are active discussion to find solutions to make businesses smooth for business businesses.

“Unless countries recognize that the regulations and obstacles to trade will meet with reciprocal action, everyone is suffering from it. We are committed to deregulation, to find solutions at the high cost of regulation, to the non-tariff obstacles that these regulations cause and obstacles to free trade. I have completely hope that we will find very robust solutions to this problem.”

He is here during an official visit to meet his Swedish counterpart and his companies for the promotion of trade and investments between the two countries.

Sweden is a member of the EU block in 27 countries.

Key Indian exports that are regularly confronted with high barriers in the EU include – peppers, tea, basmati rice, milk, poultry, beef, fish, chemicals.

Most non -tariff measures (NTM) are domestic rules created by countries in order to protect human health and environment, animals or plants. The NTM can be technical measures such as regulations, standards, tests, certification, pre-navrated inspection or non-technical measures such as quotas, import licenses, grants, government purchasing restrictions.

When the MNTs become arbitrary, beyond scientific justification, they create obstacles for trade and are called NTBS (non-tariff barriers).

India exports are much lower than the potential because they face NTB in the regions, including the EU, the United States, China, Japan and Korea.

According to the GTRI reflection group, the EU has set the LMR (minimum residual limit) for tricyclazole, a fungicide in rice, at 0.01 mg per kg compared to the limit ten times higher earlier.

Likewise, the EU has set the LMRL for Aflatoxins B1 in peppers and other spices at 5 to 10 ppb (parts per billion).

The minister said that negotiations on services and rules or origin had started.

To give momentum to the current talks for the FTA, the EU Commissioner for Trade and Economic Safety Maros Sefcovic is expected to visit New Delhi on June 28 to 29.

On the carbon border adjustment mechanism (CBAM), Goyal said that this measure was “not good” because it is also a kind of non -tariff barrier.

This carbon tax, if imposed, will do an injustice to Indian industry, he said, adding that if the EU will take such a measure, India will have to respond to this.

The Ale talks occur in a good environment and it will not be good to impose the carbon tax on Indian products, he added.

“Our discussions take place on the question to find ways to face this,” said the minister, adding that good solutions will appear on this subject.

On February 28, Prime Minister Narendra Modi and the president of the European Commission Ursula von der Leyen agreed to conclude a long-awaited free trade agreement by this year in the midst of the growing concerns concerning the policy of the American president Donald Trump on the prices.

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.

The bilateral trade of India in goods with the EU was $ 136.4 billion in 2024-25 (exporting $ 75.75 billion, imports $ 60.65 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.

EU investments in India are estimated at more than $ 117 billion with around 6,000 European companies present in India. India investments in the EU are valued at around $ 40 billion.