Negotiations on the free trade agreement (ALE) between India and the European Union (EU) made substantial progress during the last round which ended last week with the two parties exchanged for their offers on the trade in goods and services.
“We have exchanged our offers on services and non-service … There have been discussions on this subject. We have also discussed key interests in access to the market related to property, “said special secretary of the trade department L Satya Srinivas.
Srinivas directs the Indian team in India EU negotiations. Last week, the 12th round of negotiations took place in Brussels. The 13th round will be held in New Delhi in the first week of September, he said.
In an FTA, “the exchange of offers” refers to the process where the participating countries or blocks present their proposed reductions or eliminations of commercial barriers, such as rates and non -tariff measures, on goods and services. These offers are the initial proposals made by each side, describing what they are ready to give and what they expect in exchange to facilitate trade. These offers are then made from other negotiations.
The EU is an important trading partner in India with exports of $ 75.7 billion in 2024-25 and imports of $ 60.6 billion. The two parties continue the end date at the end of 2025 to conclude the FTA. Between the two sides, are also intensively virtually engaged and in person on a wide range of subjects.
India and the EU have been negotiating the ALE since 2022. In May, the ALE with the United Kingdom was concluded and last year, a pact similar to the European Free Trade Association (EFT) was signed. With the EU Trade Deal, India would have obtained preferential access to its exports to all of Europe.
AFT of India-EU covers 23 political areas or chapters, in particular trade in goods, trade in services, investment, health and phytosanitary measures, technical obstacles to trade, commercial remedies, rules of origin, customs and trade facilitation, competition, commercial defense, government purchases, dispute resolution, intellectual property rights, sustainable development.
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