India, EU Conclude Another Round Of FTA Discussions, Agree On Finalising Deal Soon

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.

India has followed the practice of negotiating trade pacts in two phases with Australia. It is following a similar approach to the US.

Source : Unsplash

India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed free trade agreement (FTA) here and agreed to reach a deal in two phases, according to an official.

"The 11th round of talks concluded on May 16," the official said.

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.

The talks focused on areas like market access offers in goods, services, and investment.

India has followed the practice of negotiating trade pacts in two phases with Australia. It is following a similar approach to the US.

Commerce Secretary Sunil Barthwal last month stated, "If some of the issues which may not be very core to the trade, maybe taking some more time, then it is better to focus on core trade issues. So, we say that first things first...We are also discussing with the EU what can be the early harvest of the first tranche, where we can do faster".

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.

On May 1, Commerce and Industry Minister Piyush Goyal was in Brussels to discuss progress on the agreement.

In June 2022, India and the 27-nation EU bloc resumed negotiations after a gap of over eight years. It stalled in 2013 due to differences over the level of opening up of the markets.

On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.

India's bilateral trade in goods with the EU was USD 137.41 billion in 2023-24 (exports worth USD 75.92 billion and imports worth USD 61.48 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, while EU's exports to India make up 9 per cent of its total overseas shipments.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion.

The two sides are negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications (GIs).

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)