Talks for the proposed trade deal between India and European Union (EU) have lent equal focus to issues around non-tariff and tariff barriers while respecting the sensitive nature of certain sectors for both nations, Commerce Minister Piyush Goyal said on May 1.
Goyal in his statement that came after a meeting with commissioner for trade and economic security of European Commission Maros Sefcovic in Brussels, also reaffirmed the commitment to conclude talks for the free trade agreement (FTA) between India and EU by the end of 2025.
“We are both equally concerned to make the market access meaningful for both countries while respecting the sensitivities that our business or our economies may have in certain sectors. The agreement once concluded will certainly be a transformative pillar of the deep partnership between India and EU, enhancing market access, aligning our regulatory practices and boosting innovation and competitiveness,” Goyal said.
The minister added that the critical role of investment and mobility to bring economic vitality to the India-EU partnership was also discussed.
India and EU have also agreed upon a framework that would promote growth for both the economies, Goyal said in a virtual statement standing alongside Sefcovic.
“We stand committed to resolving the pending issues along with our teams in the spirit of mutual respect and pragmatism so that is outcome oriented and commercially meaningly on both sides,” Goyal added.
While, India and the EU have been moving ahead with talks to ink a deal as soon as possible, both sides are yet to agree on a number of contentious issues.
For India, the biggest sticking point is EU’s carbon border adjustment mechanism (CBAM), a measure approved in 2023 and expected to be implemented from January 2026. This seeks to impose tariffs on imports of high-carbon goods including steel, cement and aluminium, aiming to reach net-zero greenhouse emissions by 2050.
Time and again Goyal has highlighted issues surrounding the EU’s carbon tax regulations and deforestation initiatives, which are expected to increase the cost of Indian exports.
Sefcovic, in his statement said that the talks for the trade deal are on the “right track” and that India and the EU are making “solid headway” towards a balanced and mutually beneficial deal.
“In today’s climate of global uncertainty, businesses are looking for opportunity, access and predictability, and that we (India and the EU) are working on together to deliver… our teams are staying in touch to keep this momentum going because our shared ambition is clear. So, let’s get this deal done by the end of this year,” the commissioner added.
Back in February, Prime Minister Narendra Modi and European Commission president Ursula von der Leyen agreed to ramp-up talks to close talks for the proposed FTA by 2025-end.
Talks between the two sides were first launched in 2007, but were frozen in 2013 because of lack of progress.
India and EU restarted negotiations for the proposed FTA in 2022 and both sides have conducted ten rounds of talks since then. These talks gained momentum this year after US President Donald Trump initiated unilateral tariffs hikes leaving no country untouched.
The next round of negotiations is scheduled in New Delhi between May 12 and May 16.
Goyal is currently on a three-nation visit that covered London, Oslo and is expected to end with Brussels on May 1.
The EU is India's largest trading partner, accounting for 12.2 percent of Indian trade, ahead of the US (10.8 percent) and China (10.5 percent). The 27-country bloc is the second-largest destination for Indian exports after the United States.
India is EU’s ninth-largest trading partner, accounting for 2.2 percent of its total trade in goods in 2023, well behind the US, China and the UK.
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