Potential Completion of Full India-EU Free Trade Agreement Before End of the Year
India-EU FTA Prospects Brighten: Piyush Goyal
India’s Minister of Commerce and Industry, Piyush Goyal, has indicated that a Free Trade Agreement (FTA) with the European Union (EU) may be finalized before the end of the year, with the potential for an interim deal. Goyal expressed optimism about the progress of negotiations, highlighting the compatible nature of the Indian and EU economies. He emphasized that the areas of disagreement are limited, with mutual benefits to be gained from increased trade relations between the two parties.Goyal mentioned that both India and the EU are aiming to reach a comprehensive FTA by the year-end deadline, although the option of an interim agreement is being considered if further time is required for detailed discussions. The minister underscored India’s commitment to addressing key issues such as sustainability and gender equality in the negotiations, ensuring a fair and balanced outcome.Throughout the talks, concerns regarding the Carbon Border Adjustment Mechanism (CBAM), EU’s deforestation regulation, and Digital Product Passport have been raised by India, while the EU has also highlighted trade matters of importance to them. Goyal affirmed that all issues are being actively addressed to facilitate a mutually beneficial FTA between India and the EU.In an effort to accelerate the negotiations, Goyal is scheduled to meet with EU trade commissioner Maros Sefcovic to assess the progress and provide impetus to the ongoing discussions. The FTA negotiations, which commenced in June 2022, cover a wide range of topics including trade in goods and services, rules of origin, customs, and other regulatory aspects.As India and the EU advance towards finalizing the FTA, both parties are open to addressing additional areas of cooperation in later stages, including government procurement, intellectual property, competition, and sustainable food systems. The goal remains to establish a comprehensive and equitable FTA that benefits both India and the EU in the long term.
