Need stronger political directions to conclude FTA with EU early: India tells France

Piyush Goyal, Union Minister of Commerce and Industry

Commerce Minister Piyush Goyal, in a meeting with his French counterpart, highlighted the need for stronger political directions for early conclusion of the proposed foreign trade agreement (FTA) between India and European Union (EU).

Goyal on November 27 held discussions with Sophie Primas, Minister Delegate of France for Foreign Trade and French Nationals Abroad on trade, investment and other issues of mutual interest.

India's trade minister's comments were part of the deliberations between the two nations on the progress made so far with respect to the ongoing negotiations for the FTA, Investment Protection Agreement and Agreement on Geographical Indications.

This was the first meeting between the ministers under Prime Minister Modi’s third term and the formation of the French government led by President Emmanuel Macron.

Last month, Goyal pointed out that India could fast-track the process of negotiating a FTA with the European Union, if the focus remains on business and trade issues.

India and EU relaunched negotiations for a Free Trade Agreement in June 2022, while separate talks for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs) were also initiated.

Goyal in the meeting with Primas on November 27 also called for greater sensitisation towards the principle of Common but Differentiated Responsibility (CBDR) and better understanding for India’s development path among the EU countries while implementing its sustainability and social measures.

This is not the first time Goyal has raised concerns around EU's sustainability measures.

In October, Goyal also highlighted issues surrounding the EU’s carbon tax regulations and deforestation initiatives, which are expected to increase the cost of Indian exports.

France is India's third largest trading partner in the EU, after the Netherlands and Germany. Bilateral trade between the two nations rose 34 percent to $15.11 billion in 2023-24 from $11.26 billion in 2019-2020.