13th round of FTA talks from Monday: India, EU hope to fast-track deal

The outcome of this round of negotiation will be crucial in determining the next steps, as both sides weigh the possibility of a political call to break the deadlock on the unresolved issues

With the year-end deadline looming, all eyes will be on the 13th round of free trade agreement (FTA) negotiations between India and the European Union (EU) set to begin on Monday.

 

The outcome of this round of negotiations will be crucial in determining the next steps, as both sides weigh the possibility of breaking the deadlock on unresolved issues.

 

Following the negotiating round, Maroš Šefčovič, Commissioner of the European Commission for Trade and Economic Security, will also be in India on September 12 to hold talks with Goyal. They would take certain political calls regarding the unresolved issues.

 

“The idea is to finalise several issues in this round (from September 8). Wherever we are not able to arrive at a decision, we will seek political guidance on that,” a senior government official told Business Standard.

 

Both sides have already concluded several chapters, including on transparency, good regulatory practices, Customs and trade facilitation, intellectual property rights, and mutual administrative assistance. They have reached in-principle agreement on the digital trade chapter as well.

 

One of India’s key concerns has been the bloc's carbon border adjustment mechanism (CBAM). It is a tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU.

 

However, with the EU offering certain concessions to United States (US) producers on CBAM, India will also bargain hard for some relief during the upcoming talks.

 

Talks with the trade bloc are being fast-tracked, amid ongoing geopolitical uncertainties and protectionist policies being implemented by the US.

 

On Thursday, Prime Minister Narendra Modi held a joint telephone call with President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen. There, the leaders reaffirmed the shared commitment for an ‘early conclusion’ of the India-EU FTA negotiations.

 

Earlier this week, commerce secretary Sunil Barthwal was in Brussels to take stock and give a push to the proposed FTA talks between India and the EU.

 

Finalising a trade deal with the trade bloc has been a key priority for New Delhi, and it has now become even more critical, since India has been unable to secure a trade agreement with the US.

 

Since the US has imposed a 50 per cent tariff on several Indian-origin goods, accessing the American market — India’s largest export destination — has been difficult. As a result, India is going all out with its diversification strategy.