India, EU Conclude 11th Round of FTA Talks; Plan Two-Phase Deal:

Suspense Crime, Digital Desk : The 11th round of negotiations concerning a free trade agreement (FTA) scheduled between India and the European Union was concluded on May 16. Both sides have tried to adopt a bi-phased approach to finalizing the deal in view of the volatile global trade environment, especially in light of past U.S tariff actions.

Focus Areas of the Talks

Discussions covered important areas such as market access for goods, services and investment in economic activities, Otherwise, this implementation strategy is consistent with India’s approach in past trade agreements with Australia and the United States. In an advancement of these talks, Commerce Secretary Sunil Barthwal noted that core trade areas need to be focused on for an early harvest.

EU’s Key Demands and India's Export Interests

The European Union requires significant reductions in tariffs for automobiles, medical devices, wines, spirits, meat and poultry, alongside an enhanced protection regime for intellectual property rights. On the other hand, the agreement is likely to lower the tariffs Indian exports face to the EU for garments, pharmaceuticals, steel, petroleum products and electrical machinery.

High-level Engagements Of International Trade

Piyush Goyal has already visited Brussels on May 1, He went there to check the progress. After being on hold since 2013 because of access to the market issues, talks resumed in June 2022. There is an understanding between our PM, Mr. Modi and the president of the European Commission, that the deal will be wrapped up by the close of the year 2025.

Full Coverage Of The Accord

The negotiations conducted by India and EU deal with 23 chapters which include but are not limited to,

Services and Goods Trade

Services and Goods Investment

Investment in Intellectual Property and Geographical Branding

Plant Health Regulations

Trading Technical Limitations of the Government

Civil Procurement along with Disputes and Settlement

Latest Figures of Trade

EU and India had a exchanges valued at USD 137.41 billion worth of goods,EU taking the lead with 75.92 billion and India with 61.48 billion in the year 2023-2024. Furthermore, EU stands as Indias top trading partner. USD 51.45 billion is the total worth of servicing trades done under these two countries for the year 2023.

Current Stage of Negotiations

Both countries are working on the FTA at the same time as working on a standalone investment protection agreement along with Geographical Indications dedicated to enhancing economic relations of the two countries.