India-EU Free Trade Agreement Could Be Concluded Before Year End: Piyush Goyal
Commerce and Industry Minister Piyush Goyal on Sunday said that negotiations for the proposed comprehensive free trade agreement (FTA) between India and the European Union (EU) are progressing at a rapid pace and the deal could be concluded before the year end.
He also said that India will raise its concerns over certain EU's regulations such as carbon tax and deforestation rules in the trade talks.
'We have certain concerns about EU practices and regulations, likewise they have certain areas which they would like to discuss. All issues are on the table and we will negotiate a fair, balanced and equitable FTA," Goyal told reporters here.
He added that all of these issues will come up for discussions, so that both sides can come up with a robust agreement that will support market access and promote easier trade.
The minister is here for a two-day visit. He will meet French leaders and business representatives to promote trade and investments between the two countries.
When asked about the expected timeline for conclusion of talks on the FTA, he said: 'We never had a deadlines for a FTA, but looking at the rapid progress that we (India and the EU) are making, my sense is that we could do it faster than the year end".
He said that there are not too many issues where both sides have divergence of opinions.
'We have both complimentary economies. In most cases what is of offensive interest to India does not hurt the EU economy, likewise goods and services that Europe would like to provide to India only support our growth story," he said.
However, the minister added that in any trading relationship, there are certain sensitive issues on both sides, 'which is what we have to resolve amicably".
'We will off course have a comprehensive FTA covering all subjects of mutual interest… Subject like gender, India bats on the front foot, and when it comes to subjects like sustainability, India is right at the fore front. India does not shy from any subject for discussions," Goyal said.
Goyal will hold a bilateral meeting with EU Commissioner for Trade and Economic Security Marcos Sefcovic on June 2 on the agreement.
There are discussions for an early harvest or an interim trade agreement between the two sides that could include issues like intellectual property rights (IPRs), government procurement, tariffs, and non-tariff barriers.
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 is concluded successfully.
In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years.
The negotiations 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 the 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.
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