India and EU Eye Early Harvest Deal to Boost Trade

Strategic Insights -

Negotiations between India and the European Union are moving quickly, with an aim to remove tariff and non-tariff barriers and boost mutually beneficial bilateral trade in goods, government procurement, and protection of intellectual property. The Indian negotiating team is already in Brussels to take forward the 11th round of talks, which was concluded on May 16 in New Delhi. An early harvest deal is expected to be announced by July this year, allowing both sides to focus on core trade matters while leaving non-core issues for later. This approach is similar to India's previous FTA negotiations with Australia and the US.

Key Takeaways:

  • India and the EU are working towards an early harvest deal to boost trade in goods, government procurement, and protection of intellectual property by July this year.
  • The Indian negotiating team is in Brussels to advance the 11th round of talks, which concluded on May 16 in New Delhi.
  • At least three to four chapters have been finalized, including trade in goods and services, investments, government procurement, and mobility for professionals.
  • Other proposed chapters include sanitary and phytosanitary measures, technical barriers to trade, trade remedies, and sustainable development.
  • The FTA negotiations will conclude in two phases: early harvest with low-hanging fruits and a comprehensive agreement later.
  • Both sides are focusing on core trade matters, leaving non-core issues like sustainability, carbon tax, and deforestation regulations for later.
  • The talks were fast-tracked after the meeting between European Union president Ursula von der Leyen and Prime Minister Narendra Modi during the college of commissioners' India visit in February this year.

Statistics:

  • 11th round of talks concluded on May 16 in New Delhi.
  • At least 20 chapters are proposed in the FTA, including trade in goods and services, investments, government procurement, and mobility for professionals (Source: Official).
  • 27 EU members must build consensus on the scope and nature of the FTA (Source: Official).
  • The rapidly evolving uncertain global trade dynamics is a reason for concluding the FTA in two phases (Source: Official).
  • India and the EU aim to conclude the FTA by July this year (Source: Official).

Sources:

  • "India and EU eyeing quick wins in FTA push," Hindustan Times, May 20, 2023.
  • This news report is based on the information given to Hindustan Times by an official source with direct knowledge of the matter (Source: Official).
  • "India and US trade talks at an advanced stage," Hindustan Times, February 28, 2023.
  • Published by HT Digital Content Services with permission from Hindustan Times.