India and the European Union (EU) have made "progress" in the ongoing free trade agreement (FTA) discussion, however, there is "a lot of work" ahead, said EU Executive Vice-President Valdis Dombrovskis on Saturday, reported news agency ANI. At a press conference in Delhi, Dombrovskis also said that ties between the two countries still have a “lot of untapped potential”.
"India and the EU are important partners. We share fundamental values and interests," Dombrovskis said, as quoted by ANI. Adding that the negotiations for the FTA occur amid contrasting geopolitical circumstances. He underscored the growing significance of trust and credibility in international interactions.
Dombrovskis, who also holds the position of the EU Commissioner for Trade, gave an update on the progress of FTA negotiations. He mentioned that both parties have been deeply involved in intensive discussions. Dombrovskis also noted the potential benefits of an FTA, such as providing preferred access for India to the EU market, which is the largest single market globally, the news agency noted.
Dombrovskis is visiting India this week and attended the G20 Trade and Investment Ministers Meeting in Jaipur. He co-chaired the EU-India High-Level Dialogue on Trade and Investment with Commerce Minister Piyush Goyal in Delhi.
On Saturday, he also met with Union Finance Minister Nirmala Sitharaman and discussed "bilateral economic and financial issues of mutual interests."
Last year, negotiations for an EU-India FTA restarted, indicating a significant move toward stronger trade relations. Talks, initially begun in 2007 and paused in 2013, are aimed at eliminating trade barriers and include areas like sustainability, labor standards, and the environment.
Concerns Over Petroleum Products Made From Russian Crude Oil Coming In EU
According to a PTI report, Valdis Dombrovskis said that oil products processed from Russian crude oil are arriving at the European market in large quantities and the grouping is looking at ways to deal with it. He said that it defies the purpose of the sanctions against Russia that are aimed at reducing its ability to finance the war with Ukraine.
He accused Russia of using its energy supplies, and food as "tools" of "war and manipulation" to continue its attack on Ukraine.
After Russia's invasion of Ukraine, Western nations imposed sanctions, including an oil price cap, to weaken Moscow's financing of the conflict. Despite these sanctions, India's purchase of discounted Russian crude oil has jumped in the past year.
"We are obviously aware that a number of countries, including China and India have not joined those sanctions. We are aware that Russia is actively seeking alternative markets for the lost European market," Dombrovskis said when asked about India's increasing trade relations with Russia and procurement of discounted Russian crude oil.
"We indeed see new trade patterns emerging. Those are some issues which are also the new developments which we are currently assessing. For example, what we see is now a rapid increase of refined oil products, so to say, imports in the EU from India. But if they are made with Russian oil, in a sense it defies the purpose which we are putting in front of us as the EU, as a Western democratic world, to reduce Russia's ability to wage the civil war," he said, as per PTI.
"So this is something which will provide some reflection on that," the top trade official added.