India, EU to focus on market access in fast-tracked FTA talks
NEW DELHI: India and the European Union have fast-tracked their free trade negotiations, proposing intensive deliberations on crucial market access issues such as eliminating tariff and non-tariff barriers in the next round of talks starting July 7 in Brussels, people familiar with the matter said adding that the two sides have already agreed on nearly a fourth of the 24-chapter deal.
With only about six months left to a previously stated deadline to conclude a balanced, equitable and mutually beneficial deal, both sides are focused on core elements of the proposed free trade agreement (FTA), thee people added, requesting anonymity. Core elements include key matters such as removing tariff and non-tariff barriers on trade in goods, services trade, bilateral investment, rules of origin (ROO), sanitary and phytosanitary (SPS) measures, and technical barriers to trade (TBT), they said.
'We have already achieved near consensus on several peripheral chapters, also crucial for smooth functioning of the FTA. These include good regulatory practices (GRP), transparency, mutual administrative assistance in customs matters, trade facilitation, and intellectual property rights (IPR),' one of them said.
Common grounds have also been achieved in several other chapters, a second person said. 'Talks have intensified and negotiations have gained significant momentum. Frequency of meetings, both virtual and face-to-face, have gone up significantly after leaders agreed to have a deal by the end of 2025,' he said. During the EU college of commissioners' India visit on February 28, 2025, its President Ursula von der Leyen and Prime Minister Narendra Modi announced that the FTA agreement would be concluded by the end of this calendar year.
'Earlier, negotiation rounds happened once in a quarter or so. After the explicit deadline, talks are happening almost every month. In fact, engagements are so intense that both teams are constantly engaged even between two rounds. For example, before and after the 11th round that officially started on May 12 and ended on May 16 in New Delhi, the two sides held several sessions on May 11 and May 17,' the second person added. Even before the commencement of the 12th round, some tracks are working bilaterally this week, he added.
While negotiating teams of India and EU are fully engaged, several key decisions and concessions would require political direction. It is expected that the EU member countries and the Indian political leadership will take necessary decisions at the right time, a third person said. 'Prime Minister Modi's first ever visit to Croatia, on his way back from the G7 Summit in Canada, is also significant for the proposed FTA as it is one of the EU members,' he said. In an interview with the Akashvani News in Zagreb, Indian Ambassador to Croatia Arun Goel said that the first ever visit of an Indian Prime Minister is of 'vital importance' in facilitating India-EU FTA.
Earlier, addressing CEOs in Cyprus on Monday, PM said: 'Last month, there was an agreement between India and the UK on an ambitious FTA. Now, we are committed to completing an FTA between India and the EU by the end of the year. Talks have picked up pace. Its benefits will be available to all of you.'
India and the EU resumed their FTA negotiations in June 2022 after a gap of nine years. Since then, they have finished 11 rounds of negotiation. The EU members are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
India and the EU have strong bilateral trade and investment relationship. According to government data, bilateral merchandise trade with the EU stood at over $135 billion (with exports to EU at $76 billion and imports from EU at $59 billion) making it the largest trading partner for India in goods. Bilateral trade in services in 2023 stood at $53 billion (comprising Indian exports worth $30 billion and imports worth $23 billion). EU investments in India are valued at over $117 billion with around 6,000 European companies present in India. Indiaʼs investments in the EU are valued at around $40 billion.
According to people mentioned above, FTAs are one of the engines to boost India's trade. India is actively pursuing three FTAs. While the one with the United Kingdom is already concluded and expected to be signed after legal scrubbing, deals are expected with the EU and the United States soon, they said. Besides, talks are on with New Zealand, Peru and Chile for three other FTAs they added,
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