The idea of an interim trade agreement between India and with the European Union (EU) before the two finalized a full-fledged free trade agreement (ALE) is back on the table. According to sources, the two parties want to obtain a kind of agreement before the end of the year due to the uncertain global commercial environment.
Talks about progress and ministerial push
While the 13th round of negotiations was completed in New Delhi on Friday, with the interim agreement on the agenda, the next round will be held in Brussels from October 6 to 10, said a senior official. “The negotiations are in an ideal place and the options remain open for an early harvest agreement,” added the manager.
The model of the staggered trade agreement has already been prosecuted by New Delhi in talks with Australia and the United States.
India and the EU carried out the 13th round of negotiations in New Delhi on Friday where, during their 5 -day calendar, the best ministers were pending to guide the negotiations.
“Significant convergence was obtained in many areas during the 13th round of talks. During the 5 -day schedule, the best ministers were waiting to guide negotiations,” said another official.
EU Commerce Commissioner Maros Sefcovic and Agriculture Commissioner Christophe Hansen had arrived in New Delhi one day before the conclusion of talks and engaged in trade and the Minister of Industry Piyush Goyal. The ministers on both sides also discussed the negotiators on both sides.
The deadline was established in February by the president of the European Commission Ursula von der Leyen and Prime Minister Narendra Modi when the entire college of EU commissioners had visited India.
Key problems and market access
“Earlier, Goyal said that India and the EU would conclude their” fairly substantially “ALE negotiations at the end of the 13th round. He also declared that the two parties had finalized 60 to 65% of the chapters in the ALE.
India-EU FTA negotiations have been covered in June 2022. The FTA covers 23 areas or political chapters, including trade in goods, trade in services, investment, health and phytosanitary health, technical obstacles to trade, commercial remedies, rules of origin, customs and trade facilitation, competition, commercial defense, Disciptitions, intellectual property rights, geographic indications, geographic indications and sustainable development.
The FTA is crucial because the block of 27 members is the largest trading partner in India with the bilateral trade in goods at $ 136.2 billion, although the United States remains the largest market. India exports amounted to $ 75.8 billion while imports were $ 60.6 billion in 2024-25. The two parties also have a very robust service of services which amounted to $ 70 billion in 2023. India has a surplus of $ 9.25 billion.
Thanks to this agreement, India is looking for preferential access to its exports with a high intensity of labor such as textiles and clothing, leather and other products such as machines, chemicals, pharmacy and metals. He also seeks the relaxation of visa standards for temporary workers for the smaller service of services.
India is also looking for a sculpture for its exports of steel and aluminum tax on the carbon tax imposed by the carbon border adjustment mechanism (CBAM). The tax will be collected from next year next year. Its trade agreement with the United States, the EU has granted this exemption for American exports of products covered by CBAM.
The EU is looking for a greater opening of the Indian market for its automotive sector, wines and spirits, agricultural products such as meat and poultry.
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