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European Union

India and EU Fast-Track FTA Talks Amid Global Trade Uncertainty

Strategic Insights

— 1 min read

India and the European Union are accelerating the free trade agreement (FTA) talks, with an interim "early harvest" deal expected by the end of the year. Both sides have made significant progress, with 60--65% of the chapters agreed, and are pushing for market access, visa relaxations, and clarity on carbon tax exemptions. The uncertain global trade environment has prompted both parties to seek a tangible outcome before the year-end.

Key Takeaways:

  • The 13th round of negotiations was completed in New Delhi on Friday, with the interim deal on the agenda for the next round in Brussels from October 6th to October 10.
  • India and the EU have achieved significant convergence in many areas during the 13th round of talks, with top ministers on standby to guide the negotiations.
  • The FTA negotiations have made substantial progress, with 60-65% of the chapters finalized, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, and Sustainable Development.
  • India is seeking preferential access to its labor-intensive exports like textiles and apparel, leather, and machinery, as well as relaxation of visa norms for temporary workers for smoother delivery of services.
  • The EU is seeking greater opening of the Indian market for its auto sector, wines and spirits, agriculture products like meat and poultry.
  • India has a surplus of $ 9.25 billion in services trade with the EU, with exports standing at $ 70 billion in 2023.
  • The EU has granted exemption to American exports of steel and aluminum products covered by the Carbon Border Adjustment Mechanism (CBAM).

Statistics:

  • 60-65% of FTA chapters finalized (Source: Commerce and Industry Minister Piyush Goyal)
  • India-EU merchandise trade: $136.2 billion (Source: IE Online Media Services Pvt. Ltd.)
  • Bilateral trade in goods: $75.8 billion (exports from India) and $60.6 billion (imports from EU) in 2024-25 (Source: IE Online Media Services Pvt. Ltd.)
  • India-EU services trade: $70 billion (Source: IE Online Media Services Pvt. Ltd.)
  • India's surplus in services trade: $9.25 billion (Source: IE Online Media Services Pvt. Ltd.)
  • EU's exemption granted to American exports of steel and aluminum products: (Source: IE Online Media Services Pvt. Ltd.)

Sources:

  • IE Online Media Services Pvt. Ltd. (distributed by Contify.com)
  • Commerce and Industry Minister Piyush Goyal

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