EU, India trying to bridge gaps during tough phase of FTA talks

Negotiations between India and the European Union (EU) for a free trade agreement (FTA) have entered the ‘most difficult’ phase, with both sides engaged in bridging the gaps and closing the talks soon, according to Indian Commerce Secretary Rajesh Aggarwal.

Key chapters like goods, services, investment, rules of origin, and technical barriers to trade were discussed, along with the EU carbon border adjustment mechanism (CBAM). Under CBAM, Indian exports of steel, aluminium, and cement to the EU could face tariffs of 20-35 per cent.

Negotiations between India and the EU for an FTA have entered the ‘most difficult’ phase, with both sides engaged in bridging the gaps and closing the talks soon, a top Indian official said.
Ruling out dropping any chapter now, he said the negotiation process will not stop if internal time lines are not met.
The 16th round of negotiations concluded earlier this month in New Delhi.

The 16th round of negotiations concluded earlier this month in New Delhi.

“We are narrowing down the differences…we are working tirelessly to close the talks,” Agrawal was quoted as saying by Indian media outlets.

“I do not think we are dropping (any chapter) as of now. Whatever is on the table is on the table. But in case, in the interest of agreement at some point in time, we feel that there are certain issues or areas that need to be dropped, may be (dropped). That call will be taken at the level of either chief negotiators or my ministers or my level, but that is not the stage we are at,” he said.

Regarding the December deadline for conclusion of the talks, he said the negotiation process will not stop if internal time lines are not met.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. It was stalled in 2013 due to differences on the level of opening up markets.

The negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications and sustainable development.

Fibre2Fashion News Desk (DS)