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European Union

India and EU May Announce Early Harvest Deal by July, Boosting Bilateral Trade

Strategic Insights

— 2 min read

As the 11th round of talks concludes in New Delhi, an official has confirmed that India and the European Union are eyeing a quick win in their free trade agreement (FTA) push. In a bid to remove tariff and non-tariff barriers, the two partners are working towards an early harvest deal that could be announced by July. This move comes as the EU seeks to stay afloat in the global trade dynamics, following the UK's successful FTA negotiations with India and the US's advanced bilateral trade talks.

Key Takeaways:

  • India and the EU are looking to announce an early harvest deal by July, targeting the removal of tariff and non-tariff barriers to boost bilateral trade in goods, government procurement, and protection of intellectual property.
  • The India-EU free trade talks are on a fast track, with an understanding to cover "core trade matters" first and then negotiate the rest of the issues of bilateral interest, including sustainability.
  • 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.
  • Of the nearly two dozen chapters, India and the EU have already finalized at least three to four chapters, including trade in goods and services, investments, government procurement, mobility for professionals, and intellectual property.
  • The proposed FTA between India and the EU may be concluded in two phases - an early harvest with low-hanging fruits and a comprehensive agreement later, due to the vast scope of the FTA and the uncertainty of global trade dynamics.
  • India has adopted a similar approach with other countries, such as Australia and the US, where negotiations focus on core trade matters first and then move on to non-core issues.
  • The talks between India and the EU gained pace after the meeting between leaders from both sides in New Delhi, with a focus on market access and sector-specific negotiations.

Statistics:

  • 11th round of talks between India and the EU concluded on May 16 in New Delhi.
  • At least three to four chapters have been finalized by India and the EU, including trade in goods and services, investments, government procurement, mobility for professionals, and intellectual property.
  • Two dozen chapters are being negotiated in the FTA talks between India and the EU.
  • The FTA talks between India and the EU are on a fast track, with an understanding to cover core trade matters first.

Sources:

  • "India and EU eyeing quick wins in FTA push" by Hindustan Times, May 20
  • "India, UK conclude free trade deal" by Hindustan Times, May 6
  • "India-EU FTA talks gather pace" by Hindustan Times, April 28
  • "India and EU eye early harvest deal to boost trade" by Hindustan Times, May 22

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