India and EU Free Trade Agreement Expected by Year-End: Piyush Goyal, ET LegalWorld
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.
Advt
Advt
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".Further, he said that India does not shy away from discussing issues pertaining to gender and sustainability in such trade pacts."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.
Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis.
Download ETLegalWorld App Get Realtime updates
Save your favourite articles
Scan to download App
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Piyush Goyal discusses opportunities in Indian shipping sector with Singapore
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Commerce and Industry Minister Piyush Goyal on Tuesday held a meeting with Singapore's Deputy Prime Minister Gan Kim Yong and discussed ways to boost economic ties and huge opportunities in the Indian shipping sector Goyal is here on an official visit to meet French leaders and businesses to host trade and investments between the two the last three-days, the minister has held a series of meetings with top CEOs and ministers, including International Energy Agency ED Fatih Birol, Nigeria's trade minister Jumoke Oduwole, French minister of economy and finance Eric Lombard, automotive supplier company Valeo Group CEO Christophe Perilat, and L'Oreal Groupe CEO Nicolas Hieronimus and highlighted huge investment opportunities in in a post on X, said that he held a meeting with Gan Kim Yong, Singapore's Deputy Prime Minister and Minister for Trade and Industry."Discussed enhancing our bilateral trade & investment ties. Also, highlighted the tremendous opportunities India offers across various sectors, especially in the shipping sector," he on the shipping sector assume significance as India is key to promote growth in this segment, as it will help boost trade and cut transportation costs for exporters faced several challenges during the Red Sea crisis, with freight rates surging sharply due to high charges imposed by foreign shipping Union Budget has placed strong impetus to realise the huge potential of India's shipping sector. The Budget proposed to set up the Maritime Development Fund (MDF) to support India's Maritime sector by providing financial assistance, via equity or debt securities. This fund will directly benefit financing for ship aims at boosting Indian flagged ships' share in the global cargo volume up to 20 per cent by the indigenous fleet will reduce the dependability of foreign ships, improve the Balance of Payment and secure the Strategic interests of the country. By 2030, MDF is aiming at generating up to Rs 1.5 lakh crore investment in the shipping sector.
&w=3840&q=100)
First Post
an hour ago
- First Post
German court deals blow to Merz's Trump-like asylum crackdown
Merz had announced the plans to reject refuge to migrants during his campaign after an Afghan asylum seeker fatally stabbed a two-year-old and an adult at the Bavarian town of Aschaffenburg read more A court in Germany has ruled that the Friedrich Merz administration has violated the law by turning back asylum seekers at the border without following a proper assessment, dealing a blow to the Chancellor's effort to cut down immigration. Merz had announced the plans to reject refuge to migrants during his campaign after an Afghan asylum seeker fatally stabbed a two-year-old and an adult at the Bavarian town of Aschaffenburg. Amid rising support for the far-right, anti-immigration Alternative für Germany (AfD), which secured over 20 per cent of the vote and finished second, the conservative leader issued a series of pledges. These promises were swiftly implemented on his first day in office by Interior Minister Alexander Dobrindt. STORY CONTINUES BELOW THIS AD What has the court said? The Berlin Administrative Court said on Monday that turning down asylum to immigrants at border controls is unlawful unless they are carried out under EU's Dublin procedure. The court was hearing the case of three Somali nationals who were sent back to Poland on May 9 as per the new regulation. 'Persons who express the wish to seek asylum while at a border check on German territory may not be sent back before it is known which country is responsible for processing the claim under the EU's so-called 'Dublin' system,' the court said. What's the case? On May 9, three individuals—two men and one woman—arrived in Germany by train from Poland. They were stopped by Federal Police at the railway station in Frankfurt an der Oder, located in the eastern state of Brandenburg. Although the trio expressed their intention to seek asylum in Germany, they were sent back to Poland the same day. Authorities justified the decision by stating that the group had entered from a safe third country. How has the govt responded? Interior Minister Alexander Dobrindt, who implemented the regulation in Germany, said that the court's ruling applies to one particular case and asserted that the government would continue working on the new system of curbing immigration. 'We will continue with the pushback. We think we have the legal justification for this,' he said. Dobrindt stated that the Interior Ministry would offer more detailed explanations for the pushbacks, in accordance with the court's request. He also noted that the migrants in question had tried to cross the border three times, only citing their right to asylum on the third attempt.
Hindustan Times
an hour ago
- Hindustan Times
OECD trims global outlook as Trump trade war hits U.S. growth
* OECD revises global growth down to 2.9% for 2025-2026 * U.S. growth forecast slashed due to trade war impact * China's growth partly offset by subsidies and welfare spending PARIS, - Global economic growth is slowing more than expected only a few months ago as the fallout from the Trump administration's trade war takes a bigger toll on the U.S. economy, the OECD said on Tuesday, revising down its outlook. The global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, the Organisation for Economic Cooperation and Development said, trimming its estimates from March for growth of 3.1% this year and 3.0% next year. But the growth outlook would likely be even weaker if protectionism increases, further fuelling inflation, disrupting supply chains and rattling financial markets, the Paris-based organisation said in its latest Economic Outlook. U.S. President Donald Trump's tariff announcements since he took office in January have already roiled financial markets and fuelled global economic uncertainty, forcing him to walk back some of his initial stances. Last month, the U.S. and China agreed to a temporary truce to scale back tariffs, while Trump also postponed 50% duties on the European Union until July 9. The OECD forecast the U.S. economy would grow only 1.6% this year and 1.5% next year, assuming for the purpose of making calculations that tariffs in place mid-May would remain so through the rest of 2025 and 2026. For 2025, the new forecast marked a sizeable cut as the organisation had previously expected the world's biggest economy would grow 2.2% this year and 1.6% next year. While new tariffs may create incentives to manufacture in the United States, higher import prices would squeeze consumers' purchasing power and economic policy uncertainty would hold back corporate investment, the OECD warned. Meanwhile, the higher tariff receipts would only partly offset revenues lost due to the extension of the 2017 Tax Cuts and Jobs Act, new tax cuts and weaker economic growth, it added. Trump's sweeping tax cut and spending bill was expected to push the U.S. budget deficit to 8% of economic output by 2026, among the biggest fiscal shortfalls for a developed economy not at war. As tariffs fuel inflation pressures, the Federal Reserve was seen keeping rates on hold through this year and then cutting the fed funds rate to 3.25-3.5% by the end of 2026. In China, the fallout from the U.S. tariff hikes would be partly offset by government subsidies for a trade-in programme on consumer goods like mobile phones and appliances and increased welfare transfers, the OECD said. It estimated the world's second-biggest economy, which is not an OECD member, would grow 4.7% this year and 4.3% in 2026, little changed from previous forecasts for 4.8% in 2025 and 4.4% in 2026. The outlook for the euro area was unchanged from March with growth forecast this year at 1.0% and 1.2% next year, boosted by resilient labour markets and interest rate cuts while more public spending from Germany would buoy 2026 growth. The UK outlook was a tad better than in March with growth forecast at 1.3% this year and 1.0% in 2026, revised marginally lower from March estimates for 1.4% in 2025 and 1.2% in 2026.
