India-EU FTA Negotiations Progress Steadily

Strategic Insights -

Negotiations for a comprehensive free trade agreement (FTA) between India and the European Union (EU) are progressing steadily, despite remaining differences on sectors such as steel, automobiles, and non-tariff barriers. The 14th round of talks between Indian and EU officials concluded last week in Brussels, with a focus on resolving outstanding issues across goods and services to facilitate an early conclusion of the negotiations. Commerce Secretary Rajesh Agrawal joined the talks and held discussions with European Commission Director General for Trade Sabine Weyand to provide a renewed push to the negotiations.

Key Takeaways:

  • The 14th round of talks between Indian and EU officials concluded last week in Brussels, with a focus on resolving outstanding issues on steel, automobiles, and non-tariff barriers.
  • The EU has sought significant duty reductions on automobiles and medical devices, as well as tariff cuts on products such as wine, spirits, meat, and poultry, alongside a robust intellectual property framework.
  • The negotiations cover 23 policy areas, including trade in goods and services, investment, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, customs, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.
  • The EU accounts for 17 percent of India's total exports, while exports from the bloc to India constitute 9 percent of its total overseas shipments.
  • The EU has pursued duty reductions and tariff cuts on various products, including wine, spirits, meat, and poultry.
  • Commerce Secretary Rajesh Agrawal's participation in the talks provided a renewed push to the negotiations.
  • Indian exports to the EU include ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery.

Statistics:

  • Bilateral trade in goods between India and the EU stood at USD 136.53 billion in 2021-22 (exports of USD 75.45 billion and imports of USD 61.08 billion).
  • The EU accounts for 17 percent of India's total exports.
  • Exports from the EU to India constitute 9 percent of its total overseas shipments.
  • Bilateral trade in services was estimated at USD 51.45 billion in 2022.
  • The negotiations cover 23 policy areas.
  • The EU has sought significant duty reductions and tariff cuts on various products.

Sources:

  • KNN (Knowledge & News Network)
  • HT Digital Content Services
  • PTI
  • European Commission
  • Government of India