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‘Even if tariffs are reduced, non-tariff may still remain a challenge.’
IMAGE: External Affairs Minister S Jaishankar meets European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels, June 11, 2025. Photograph: DrSJaishankar X/ANI Photo
European Union Trade Commissioner Maroš Šefčovič on Wednesday said he hoped for more progress in trade talks to be made during his visit to New Delhi last week, ahead of the impending December deadline to conclude a trade deal.
‘I travelled to India last week. It was already my third visit this year in an effort to advance the negotiations, which have now reached 13 rounds. I must admit, however, that I hoped for more progress to achieve last week.’
‘I remain in frequent contact with my counterpart (India’s Commerce and Industry) Minister (Piyush) Goyal,’ Šefčovič told reporters in Brussels.
Šefčovič said Indian negotiators are known for their tough stance, but assured that the bloc will continue to firmly uphold its interests.
India decided to fast-track talks with the EU, its second-largest export destination, as tension flared with the US and exporters looked for a large market to absorb shipments if a trade deal with Washington did not materialise.
European Commission President Ursula von der Leyen on Wednesday said both sides are committed to finalising the trade agreement by year end.
‘Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU-India strategy, we are taking our relationship to the next level,’ she posted on X.
She also spoke with Prime Minister Narendra Modi and the two sides reaffirmed their commitment to conclude negotiations for the much awaited free trade deal by December.
The prime minister conveyed to von der Leyen his appreciation for the EU’s adoption of a new strategic agenda for ties with India.
The EU’s key interests include cars, wines and spirits, and agriculture — areas considered sensitive by India, and are still under negotiation.
Similarly, sorting out the non-tariff measures related to safety, packaging and environmental norms is among India’s priorities.
Šefčovič said both sides hoped to conclude the chapter on agriculture and automobiles, but it did not materialise.
‘(On agriculture), we’ll have another try, but we also need an understanding from the Indian side that we also have our constituency, audience and I have to bring the agreement to the member States, European Parliament to support it,’ he said.
The EU trade commissioner also highlighted the fact that India has one of the highest tariffs in the world in the case of cars, and discussions are focused on lowering them to benefit both sides. ‘…But I think we understand each other’s points better than before and it will help us prepare for the next round of discussions,’ he said.
The 13th round of negotiation for the free trade agreement between India and the trade bloc was held from September 8 to September 12 in New Delhi.
Further negotiations are planned to bridge the gaps.
Officials are preparing for the 14th round of negotiation which is scheduled in Brussels from October 6 to 10.
Both sides are yet to resolve differences on automobiles, agriculture, alcoholic beverages, services, and non-tariff measures, an Indian government official told Business Standard.
“Good progress has happened on multiple fronts but no new chapters were closed during the round. The chapter on goods has not been locked,” the official said.
“There is a need for more discussion on areas such as automobiles, alcoholic beverages, and certain aspects related to services,” the official added.
India has also flagged the non-tariff measures that Indian exporters face mainly in the fisheries and agriculture sectors in the European market.
That apart, the bloc’s plan to roll out a carbon border adjustment mechanism and deforestation regulation has also been India’s key area of concern.
“Even if tariffs are reduced, non-tariff may still remain a challenge. Both sides have pointed out the non-tariff measures as these measures increase the compliance burden and cost,” the official cited above said, adding that India’s Quality Control Orders are the EU’s key area of concern.
As of now, chapters on transparency, good regulatory practices, Customs and trade facilitation, intellectual property rights, and mutual administrative assistance have been concluded.
Both sides have reached in-principle agreement on the digital trade chapter as well.
Talks with the trade bloc are being fast-tracked, amid ongoing geopolitical uncertainties and protectionist policies being implemented by the US.
‘Europe is already India’s biggest trading partner and we are committed to finalising our Free Trade Agreement by the end of the year. Europe is open for business. And we are ready to invest in our shared future with India,’ an official statement on the New Strategic EU-India Agenda quoted von der Leyen as saying.
While the trade deal was expected to be accompanied with pacts on investment protection and geographical indicators, the finalisation of the three pacts are not interdependent, the official said.
During 2024-2025, India exported goods worth $75.85 billion to the bloc, down 0.09 per cent year-on-year.
Imports also witnessed 1.3 per cent contraction and stood at $60.68 billion, commerce department data showed.
During FY25, the EU was India’s second largest export destination after the US.
Feature Presentation: Ashish Narsale/Rediff
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