Trade differences remain between India and EU after 14th round of talks

Disagreements relate to market access for goods and also investment, trade, and sustainable development

Differences persisted between India and the European Union (EU) in their discussion earlier this month on the proposed free-trade agreement (FTA), leaving no scope for a substantial breakthrough.

 

In the 14th round of negotiations, which took place in Brussels, the disagreements related to market access for goods, and also investment, trade, and sustainable development.

 

However, progress was made in consolidating the text of the negotiations, according to the report.

 

While both sides had “constructive discussions”, resulting in progress on a number of provisions related to trade and sustainable development, “substantial differences” remained, including those on the binding and enforceable nature of such commitments.

 

“On market access, both sides made their expectations known for tariff liberalisation, red lines and flexibilities, both on the levels of liberalisation and on the staging of tariff dismantling. Discussions will continue intersessionally,” the report said.

 

While the 14th round took place from October 6 to 10, some officials stayed back to continue discussion on the “Rules of Origin” chapter.

 

The EU’s key pitch was in areas including cars, wines and spirits, and agriculture -- the segments India considers sensitive -- and they are still under negotiation.

 

Similarly, for India, sorting out non-tariff measures related to safety, packaging, and environmental norms, such as the Carbon Border Adjustment Mechanism (CBAM), is among the priorities.

 

The report did not mention any specifics. A government official said that both sides were yet to resolve matters related to agriculture, automobiles, and the CBAM.

 

“Some progress was made in outstanding areas, in particular on the SPS (sanitary and phytosanitary) chapter, which was closed...At this stage, discussions at technical level will now take the form of a continuous intensive engagement at chief negotiators’ level, with the participation of relevant experts, both in virtual and in person format, rather than fully fledged rounds. Intensive engagement at political level will also continue,” the report said.

 

The two sides are working to conclude the deal by the end of the year. Commerce and Industry Minister Piyush Goyal is expected to visit Brussels to give a push to the negotiations.

 

Last week Commerce Secretary Rajesh Agrawal had said the proposed deal was in the final stages, in which the toughest issues would be taken up. “We are in the last leg of negotiations. The last leg is the most arduous leg,” he had said.

 

During 2024-25, India exported goods worth $75.85 billion to the bloc, down 0.09 per cent year-on-year.

 

Imports also witnessed a 1.3 per cent contraction and stood at $60.68 billion, the commerce department data showed.

 

During  2024-25  , the EU was India’s largest export destination after the US.