India and EU Reaffirm Commitment to Conclude Long-Pending Free Trade Agreement by 2025

Strategic Insights -

Despite ongoing discussions on critical issues, India and the European Union have reaffirmed their commitment to conclude the long-pending Free Trade Agreement (FTA) by the end of 2025. The two sides have agreed to further discuss sensitive topics, including steel, automobiles, carbon levies, and labor-intensive sectors. The EU's technical team is set to visit India next week to advance the negotiations.

Key Takeaways:

  • India and the EU have agreed to further discuss sensitive issues, including steel, automobiles, carbon levies, and labor-intensive sectors, due to higher sensitivities.
  • The EU's technical team, led by the Director General for Trade, will visit India next week to build on potential solutions identified during the Brussels discussions.
  • India emphasizes the need for a balanced, equitable, and meaningful trade agreement that promotes transparent and predictable trade frameworks.
  • The FTA between the two countries is also in focus after the US imposed steep tariffs on India, impacting its imports.
  • The EU is India's biggest trading partner in goods, with bilateral trade hitting $137.5 billion in the 2023/24 fiscal year, up nearly 90% over the past decade.

Statistics:

  • The FTA between India and the EU aims to be concluded by the end of 2025.
  • India and the EU have agreed to finalise non-sensitive industrial tariff lines.
  • The EU's carbon levy, known as the border adjustment mechanism, is a point of concern for India.
  • The bilateral trade between India and the EU has increased by nearly 90% over the past decade, reaching $137.5 billion in the 2023/24 fiscal year.

Sources:

  • Official statement on October 29.
  • Reuters report.
  • IE Online Media Services Pvt. Ltd.
  • Contify.com [1]