Commerce Secretary Sunil Barthwal to push FTA talks with EU in September

Commerce secretary Sunil Barthwal will be heading to Brussels early next month to take stock and give a push to free trade agreement (FTA) talks between India and the European Union (EU).

 

Barthwal is expected to travel to Brussels, as early as next week, even before the 13th round of negotiations that will take place in New Delhi on the week starting September 8, a person aware of the matter said.

 

Since the conclusion of the previous round on July 11, in the interim, both sides have been holding meetings over all the broad key issues pertaining to the proposed trade deal.

 

Talks with the trade bloc are being fast-tracked, amid ongoing geopolitical uncertainties and protectionist policies being implemented by the United States (US). The EU is India’s second largest export destination after the US.

 

Finalising a trade deal with the trade bloc has been a key priority for New Delhi, and it has now become even more critical.

 

This is because India has been unable to secure a trade agreement and moreover, exports to the US are set to attract a 50 per cent import tariff later this week. This is adding urgency to India’s efforts to strengthen trade ties with the bloc.

 

Further meetings are also expected to take place between Commerce and Industry Minister Piyush Goyal and his counterpart, the person cited above told Business Standard.

 

In February, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen set an ambitious deadline to sign the long-pending FTA by the end of 2025.

 

Both sides have already concluded on several chapters, including those covering transparency, good regulatory practices, Customs and trade facilitation, intellectual property rights, and mutual administrative assistance.

 

Both sides have reached an in-principle agreement on the digital trade chapter as well.

 

Regarding trade and sustainable development (TSD), including the contentious labour and environmental issues which India considers non-trade issues, both sides are making progress on several provisions and exploring alternatives on others.

 

“Nevertheless, substantial differences remain, including on the binding and enforceable nature of TSD commitments,” the European Commission said in a statement, following the conclusion of the 12th round of talks in July.

 

India-EU FTA talks will also include negotiations in new areas, such as non-services sectors — areas that India has never previously engaged with in trade discussions.

 

The official cited above said that the idea is to give long-term regulatory certainty in the domestic manufacturing sectors and thereby attract investment from the bloc.

 

Renewable energy and high-tech sectors will be some areas of focus, where India is seeking to attract investments.

 

That apart, India is also working on creating regulations that are favourable for investments in the country.