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European Union

India and EU Eye Early Harvest Deal to Boost Trade

Strategic Insights

— 1 min read

Negotiations between India and the European Union for a comprehensive free trade agreement are moving swiftly, with both sides exploring the possibility of an early harvest deal by July. The deal aims to remove tariff and non-tariff barriers, while boosting mutually beneficial bilateral trade in goods, government procurement, and intellectual property protection. The Indian negotiating team is already in Brussels to take forward the 11th round of talks, which concluded on May 16 in New Delhi.

Key Takeaways:

  • India and the EU are targeting an early harvest deal by July to boost trade in goods, government procurement, and intellectual property protection.
  • The Indian negotiating team is in Brussels to move forward with the 11th round of talks, which concluded on May 16 in New Delhi.
  • The two sides have finalized at least three to four chapters, including trade in goods and services, investments, government procurement, and mobility for professionals.
  • The proposed chapters include sanitary and phytosanitary measures, technical barriers to trade (TBT), trade remedies, rules of origin (ROO), customs and trade facilitation, competition, trade defence, dispute settlement, geographical indications, and sustainable development.
  • The EU wants to conclude the proposed FTA in two phases - early harvest with low-hanging fruits and a comprehensive agreement later due to the vast scope of the FTA and rapidly evolving global trade dynamics.
  • India had a similar approach with Australia in 2022, where it focused on core trade matters before initiating sector-specific discussions.
  • Trade matters have gained precedence in negotiations over non-trade issues such as sustainability, carbon tax, and deforestation regulations.

Statistics:

  • India and the EU aim to conclude an early harvest deal by July.
  • The two sides have finalized at least three to four chapters, including trade in goods and services, investments, government procurement, and mobility for professionals.

Sources:

  • HT (Hindustan Times)

+ "India-EU trade talks on fast track, early harvest deal eyed" (May 20, 2023)

+ "India, EU to conclude FTA in two phases, EU keen on quick wins" (May 22, 2023)

  • HT Pune

+ "India, EU eye early harvest deal to boost trade" (May 22, 2023)

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