India-EU free trade agreement talks to resume on September 23

The ninth round of negotiations for the India-European Union (EU) free trade agreement (FTA) is scheduled to be held between September 23-27 in New Delhi.

The talks this time will focus on core trade issues, including goods, services, investment, and government procurement, alongside discussions on essential rules such as rules of origin, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT), and trade remedies.

Continuing from previous rounds, this meeting will address concerns raised by Indian stakeholders regarding the EU’s sustainability measures, including the carbon border adjustment mechanism (CBAM) and deforestation regulations.

Commerce secretary optimistic

Commerce Secretary Sunil Barthwal expressed hope that talks with the UK will resume in October.

In February, Union Commerce Minister Piyush Goyal had indicated that while the India-UK free trade agreement (FTA) negotiations may take time to be finalised, the potential agreement is expected to enhance Indian exports and protect the interests of production linked incentive (PLI) scheme beneficiaries, Indian farmers, and various industries.

Negotiation history and industry concerns

Negotiations for the India-UK FTA began in 2007 but were stalled in 2013 due to disagreements over issues such as customs duties on automobiles and spirits, and the movement of professionals. After a nine-year hiatus, discussions have restarted.

Minister Goyal  challenged the protectionist stance of some industry players, wondering how India can pursue FTAs with the UK and EU if domestic industries seek only duty-free access to foreign markets while resisting the entry of foreign goods into India.

Both the India-UK and India-EU FTAs are key to enhancing trade relations and addressing longstanding trade barriers, with ongoing negotiations aimed at balancing interests and fostering economic growth.

(Edited by : Shoma Bhattacharjee)

First Published: Sept 17, 2024 5:39 PM IST

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