A team of visitors from the European Union (EU) will hold talks with Commerce and Industry Minister Piyush Goyal on Monday (December 8) regarding the progress of negotiations on the proposed Free Trade Agreement (FTA), an official source said.
This meeting is crucial as both sides are keen to conclude negotiations as soon as possible.
The delegation, led by EU Trade Director-General Sabine Weynad, is in India to resolve disputes on issues related to both goods and services. They set an end-of-year deadline to complete the negotiations.
Exports of Indian products to the EU, including ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery, can become more competitive if the deal is adopted.
Negotiations on the India-EU trade deal cover 23 policy areas or chapters, including trade in goods, services, investments, rules of origin, customs and trade facilitation, government procurement, dispute resolution, intellectual property rights and geographical indications.
“The EU team will meet the minister on Monday,” the official said.
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Differences which still need to be ironed out in certain areas, such as steel, carbon tax, automobiles or non-tariff barriers.
India and the EU resume negotiations in 2022
Three and a half years ago, India and the EU resumed negotiations for a comprehensive FTA, an investment protection pact and an agreement on geographical indications after a hiatus of more than eight years.
It was hampered 12 years ago due to disagreements over the level of market opening.
India’s bilateral merchandise trade with the EU, a 27-member bloc, stood at $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making it the largest merchandise trading partner.
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The EU market accounts for around 17 percent of India’s total exports, and the bloc’s exports to India account for 9 percent of its total overseas shipments.
In addition to demanding significant reductions in tariffs on automobiles and medical devices, the EU wants reduced taxes on other products such as wine, spirits, meat, poultry, as well as a strong intellectual property regime.
Exports of Indian products to the EU, including ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery, can become more competitive if the deal is concluded.
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Negotiations on the India-EU trade deal cover 23 policy areas or chapters, including trade in goods, services, investments, rules of origin, customs and trade facilitation, government procurement, dispute resolution, intellectual property rights and geographical indications.
(With contributions from the Agency)
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