The FTA negotiations, which cover 23 policy areas, include trade in goods and services, investment, technical barriers, customs facilitation, intellectual property rights and sustainable development.Negotiations on the proposed free trade agreement (FTA) between India and the European Union (EU) are progressing, although differences remain in areas such as steel, automobiles and non-tariff barriers, a senior official said. PTI Monday.
Officials from India and the 27-member EU concluded the 14th round of talks in Brussels last week. The five-day talks, which began on October 6, aimed to resolve outstanding issues related to trade in goods and services to accelerate the conclusion of the agreement.
Key questions under discussion
“The talks are progressing well. There are issues that need to be resolved, such as steel and automobiles. No major issues are pending in agriculture,” the official said. Commerce Secretary Rajesh Agrawal joined the talks in the final days to provide momentum. During his visit, he also met with the European Commission’s Director-General for Trade, Sabine Weyand, for further discussions.
The proposed agreement aims to improve market access, simplify trade rules and strengthen investment protection between the two parties. However, divergences persist regarding tariff reductions in sensitive sectors.
The EU has called for reduced tariffs on automobiles, medical devices, wine, spirits, meat and poultry, and called for a stricter intellectual property regime. India, for its part, is seeking to facilitate access for its exports such as ready-made garments, pharmaceutical products, steel, petroleum products and electrical machines.
Business relationship and next steps
The FTA negotiations, which cover 23 policy areas, include trade in goods and services, investment, technical barriers, customs facilitation, intellectual property rights and sustainable development.
In June 2022, India and the EU resumed negotiations for a comprehensive trade and investment agreement after a break of more than eight years. Negotiations stalled in 2013 due to differences over the extent of market liberalization.
India’s bilateral merchandise trade with the EU stood at $136.53 billion in 2024-25, with exports worth $75.85 billion and imports worth $60.68 billion. The EU accounts for around 17 percent of India’s total exports, while its exports to India account for 9 percent of its global shipments.
In the area of services, bilateral trade was estimated at $51.45 billion in 2023.
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