Trade tensions triggering an emergency for the diversification of exchanges, India explores faster trade agreements in the form of a trade agreement of “early harvest” with the European Union focused on basic commercial issues, the Secretary of Commerce Sunil Barthwal said on Tuesday.
In commercial language, an early harvesting agreement between two business partners helps countries identify certain products for the liberalization of prices while awaiting the conclusion of the negotiation of the free trade agreement (ALE). India had previously signed a similar harvesting or mini-trame agreement with Australia and is currently negotiating a complete trade agreement.
“This has been our opinion, we also discuss with other countries, only if some of the questions that may not be very fundamental to trade and perhaps take a little more time, then it is best to focus on commercial problems first. So, we first say things first, and trade benefits should accumulate from both countries, companies in the two countries and people of the time we can also discuss the end of the word if we involve all types of subjects involved in the free trade agreement with the EU, “said Barthwal.
The Secretary of Commerce said that the government adopted a “very very pragmatic approach” with the EU as they adopt with the United States.
A similar strategy was adopted with the United States to negotiate a first tranche before the complete bilateral commercial agreement, for which negotiations are underway. Officials have indicated that negotiations for the BTA with the United States could be wrapped “as soon as possible”, the external limits being a fall of this year.
In February, India and the European Union had organized the tenth series of negotiations on commercial transactions, where the two countries had made considerable progress in the standards on the standards which will guide the settlement of disputes in the pact, but had not made a significant breakthrough on the rules of origin, which contribute to determining the national source of a product. The 10th round of talks focused on potential access to the market in goods, services, investment and government purchases.
Prime Minister Narendra Modi and Ursula von der Leyen, president of the European Commission, had announced that the two parties would aim to conclude the free trade agreement by the end of 2025. The two parties have been negotiating the agreement since July 2022 and held ten series of discussions. The 11th cycle of talks between the two business partners is scheduled from May 12 to 16 in New Delhi.
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The two parties had discussed the rules specific to the product for several sectors, in particular: “processed agricultural products, fisheries, pharmaceutical products, chemicals, fertilizers, textiles and clothing, automotive parts, wooden paste and paper.” They also organized specific discussions on cars and medical devices, following a previous declaration of the block of 27 members not to be willing to sign a commercial agreement without access to the “substantial” market from India for the sale of European manufacturing cars.
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