He said that if India and the EU may not agree on all questions, it is confident to reach a “very good agreement”. “India, EU teams, are engaged in intense negotiations for a free trade agreement,” said Goyal.
“Potential to encourage innovation”
“Each agreement has a certain gift and to take it to make it a balance; there can never be a perfect situation. And we must not make perfect an enemy of good.” “I assure you the possibilities that we are trying to unlock, you will find the arrangements between India, the attractive, exciting EU and have good potential for companies to grow and collaborate and encourage innovation,” said the minister.
Note that the automotive market in India is developing and prosperous, Sefcovic said: “I believe that our common objective with the Minister Goyal is to ensure that FTA would facilitate double -meaning trade flows between India and the EU on the condition of tariff liberalization for all components, branches”. The 13th round of AFT talks in India-EU took place in New Delhi from September 8 to 12. Sefcovic and the agriculture commissioner of the European Commission Christophe Hansen visited New Delhi to review the progress of the Ale talks with Goyal.
“I believe it would be a Winwin scenario for our industries and, in particular, would facilitate the introduction of new advanced technologies in India,” said Goyal. “I believe that by combining the power of our automotive markets, the third and fourth largest in the world, we can lead the load in the development of advanced combustion engines as well as electric vehicles with advanced battery technologies and intelligent mobility solutions that meet the needs of the changing world.”
Auto service concessions
The Minister’s declaration assumes importance while the EU seeks concessions on import rights in the automotive sector from India. India, which also facilitates more than 100% of import duties on fully built vehicles, has given service concessions to cars built in the United Kingdom as part of a recent ALE. Hansen also said that the EU-India relationship does not only concern trade, but on high-added investment that would create thousands and millions of additional jobs. Several European car manufacturers such as Volkswagen and Mercedes-Benz have manufacturing units in India.
“Our cooperation in this sector is also to share best manufacturing practices, to invest, in research and development, especially if they present themselves to next generation vehicles,” said Sefcovic. “We would work on standards, and of course, we would be in jointly raising global challenges such as climate change thanks to cleaner and more effective technologies.” Noting that global trade is seriously disrupted by geopolitics, he said that India and the EU should adapt to new realities while seizing new opportunities in expanding market access, creating resilient supply chains and expanding bilateral trade.
Reinforcement of supply chains
On current global uncertainties, he said that India and the EU work together to unlock investments, reduce barriers, extend market access and strengthen supply chains to protect against the risks of unforeseen events. The imposition of rates raised by the United States on several countries has sparked uncertainties in world trade. The United States has imposed a high 50% function on several Indian products. Goyal said India will benefit from EU’s economy and innovations.
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