India, EU discuss pending issues on proposed bilateral trade pact

Key differences that are yet to be resolved include issues related to steel, the EU’s carbon border tax, automobiles and non-tariff barriers.

Sefcovic is leading an EU delegation for talks in New Delhi.

Negotiations span 23 policy areas, including goods, services, investment, rules of origin, customs and trade facilitation, government procurement, dispute settlement, intellectual property rights and geographical indications.

In a post on X, Sefcovic said: “In India for a two-day marathon of meetings with @PiyushGoyal to advance our trade and investment negotiations”.

“Held a productive meeting with EU Trade and Economic Security Commissioner, Mr. @MarosSefcovic. We discussed the progress on the India-EU FTA and explored ways to resolve the issues to further advance the negotiations,” Goyal said on the microblogging platform.

The visiting EU delegation includes Directorate-General for Trade Sabine Weyand, EU ambassador to India Herve Delphin, EU chief negotiator Christophe Kiener and Petros Sourmelis, head of the trade section at the EU Delegation to India.

India and the EU resumed negotiations in June 2022 for a comprehensive free trade agreement (FTA), an investment protection pact and an agreement on geographical indications, after an eight-year pause. Talks had stalled in 2013 over disagreements on market access.

Bilateral goods trade between India and the EU stood at $136.53 billion in fiscal 2024-25, with Indian exports at $75.85 billion and imports at $60.68 billion, making the latter the former’s largest trading partner in goods.

The EU accounts for about 17 per cent of India’s total exports, while its shipments to India represent around 9 per cent of the bloc’s global exports.

The EU is seeking substantial duty cuts on automobiles and medical devices, as well as lower taxes on wine, spirits, meat, and poultry, alongside stronger intellectual property protections.

If concluded, the pact could boost competitiveness of Indian exports like readymade garments, pharmaceuticals, steel, petroleum products and electrical machinery.

ALCHEMPro News Desk (DS)