EU and India Make Progress in Trade Pact Negotiations

Strategic Insights -

As the 13th round of negotiations for a proposed trade pact between the European Union (EU) and India drew to a close, EU Trade Commissioner Maros Sefcovic expressed optimism about the prospects for the agreement. The treaty aims to facilitate two-way trade between the two parties through tariff liberalization, covering all automobile components, from engines to brakes. Sefcovic and European Commission's Agriculture Commissioner Christophe Hansen held meetings with Commerce and Industry Minister Piyush Goyal to review the progress of talks. The EU is seeking duty concessions in the auto sector from India, and the commissioner emphasized the importance of cooperation in this sector, highlighting the potential for high-value-added investment and job creation. Several European auto firms, including Volkswagen and Mercedes-Benz, have already set up manufacturing units in India.

Key Takeaways:

  • The EU and India are negotiating a proposed trade pact that would facilitate two-way trade through tariff liberalization across all automobile components.
  • The agreement aims to enable trade flows between India and the European Union under the condition of tariff liberalization for all components, from engines to brakes.
  • The EU Trade Commissioner Maros Sefcovic and European Commission's Agriculture Commissioner Christophe Hansen met with Commerce and Industry Minister Piyush Goyal to review the progress of talks.
  • The EU is seeking duty concessions in the auto sector from India, as the country has provided duty concessions in the sector for UK firms under a trade pact signed on May 6 this year.
  • India currently levies over 100 per cent duty in the auto sector.
  • The EU-India relationship is not just about trade, but also high-value-added investment that will create additional thousands and millions of jobs.
  • Several European auto firms, including Volkswagen and Mercedes-Benz, have set up manufacturing units in India.
  • Cooperation in the auto sector aims to facilitate the introduction of advanced new technologies into India, including cutting-edge combustion engines, electric vehicles with advanced battery technologies, and smart mobility solutions.

Statistics:

  • 13th round of negotiations for the proposed trade pact between the EU and India took place from September 8-12.
  • 100%: duty levied by India in the auto sector.
  • 2: parties (EU and India) involved in the proposed trade pact negotiations.
  • 2: commissioners (Maros Sefcovic and Christophe Hansen) who held meetings with Commerce and Industry Minister Piyush Goyal.
  • 2: automobile components (engines to brakes) covered by the proposed trade pact.
  • May 6: date when the trade pact between the UK and India was signed.

Sources:

  • EU Trade Commissioner Maros Sefcovic
  • European Commission's Agriculture Commissioner Christophe Hansen
  • Commerce and Industry Minister Piyush Goyal
  • Contify.com