India-EU Free Trade Agreement Talks Progressing Rapidly: Piyush Goyal:

Suspense crime, Digital Desk : Piyush Goyal, the Minister of Commerce and Industry has said that India and the European Union are discussing an overarching Free Trade Agreemment (FTA), and is progressing faster thanexpected in negotiations. It might be completed by the end of the year.

Goyal stated that India will be negotiating some issues with EU’s carbon tax and deforestation policy. While addressing the reporters, he said, “It is no brainer we have issues with some EU regulations. They also have points that want to discuss. So it’s all open — we pursue, as always, a balanced equitable FTA.”

Gist: More Broader Market Access With Less Trade Restrictions

The Minister further stated that all relevant subjects will be covered in developing a firm trade policy to ensure that there is better access to markets and that trade is as simple as possible. Goyal is in France for a two-day trip and plans to host political and business elites from France for the purpose of discussing investmentsand trade.

When he was asked when the FTA is expected to be ready, he responded that there isn’t a set date but based on the progress or pace of discussions, it is likely to be done sooner than planned.

Significant Differences of Opinions by the Parties

Goyal pointed out that both India and the EU have economies that complement each other. In his words, India's trade concerns usually do not oppose the economic priorities of the EU and vice versa. He also pointed out that, like in all negotiations, there are sensitive areas for both sides which are very carefully managed.

He further added India is willing to talk about including gender equality and sustainability in the agreement. “India does take the lead on issues of gender and sustainability. We are prepared to discuss all relevant subjects,” Goyal remarked.

Future Talks of a Higher Level

Goyal is to meet with the Trade and Economic Security Commissioner of the European Union, Marcos Sefcovic on 2nd June, with the aim of advancing the negotiations of the FTA. The agenda might also include the chance of an interim agreement on trade with selected portions such as intellectual property rights, tariffs, and non-tariff trade barriers.

The EU’s position is that India should reduce her tariffs on automobiles, spirirts, and meat, and increase her limits for the protection of intellectual property. On the contrary, India stands to gain from the agreement through increased exports of garments, pharmaceuticals, steel, petroleum products, and electrical equipment.

History of the Talks on Trade Between India and the EU

After an eight year break, India and the EU have made progress on the talks since June 2022. The long negotiations came to a halt in 2013 due to differences concerning the accessibility of markets.

This February, the President of the European Commission and Prime Minister Modi have discussed in an agreement to work towards accomplishing the deal by the end of 2025. The FTA (free trade agreement) discussions now include 23 critical factors such as: services, investments, customs, the management of conflicts, government contracts, as well as sustainable advancement.

Statistics and Comparison of Markets Trading Volume and Market Share Accounted From The Trade Relationship

The trade figures for the goods exchanged between India and EU reached $137.41 billion in 2023-2024. India exported goods worth $75.92 billion and imported goods worth $61.48 billion from the EU. India is said to account for over 17% of the total exports of the EU while the EU accounts for 9% of India’s global total exports. On top of that, the bilateral trade in services reached $51.45 billion in 2023.