January 20, 2025
The two sides agreed to enhance cooperation in trade and sustainable development while addressing legacy issues through continuous consultations
India's concerns about the EU's sustainability measures, such as the Carbon Border Adjustment Mechanism, were highlighted as potential non-tariff barriers
Strategic political guidance was sought to conclude FTA talks, with sensitivities on labour, climate change, and procurement policies under scrutiny
Discussions prioritised reducing dependency on non-market economies and addressing tariff and non-tariff barriers for fair trade
India and the European Union (EU) are set to deepen their economic partnership by collaborating on advanced technologies and securing critical raw material supply chains. The strategic roadmap was discussed during Commerce and Industry Minister Piyush Goyal’s visit to Brussels on January 18–19, where he met Maros Sefcovic, European Commissioner for Trade and Economic Security.
A statement from India’s commerce ministry emphasised a commitment to building a “commercially meaningful trade agenda” that is fair and addresses both tariff and non-tariff barriers. Goyal and Sefcovic highlighted the need to foster resilient supply chains, reduce reliance on non-market economies, and expedite progress towards a robust Free Trade Agreement (FTA).
Both leaders provided political directions to their teams to develop a mutually beneficial trade and investment framework. The ongoing discussions also reviewed progress within the India-EU Trade and Technology Council (TTC), which focuses on sustainable trade, innovation, and investment issues.
Goyal’s visit followed nine rounds of intensive FTA negotiations, which have encountered challenges related to state-owned enterprises, procurement policies under ‘Make in India’, rules of origin, and technical regulations. Additionally, India has raised concerns over the EU’s sustainability measures, such as the Carbon Border Adjustment Mechanism and Deforestation Regulation, which it perceives as non-tariff barriers.
Despite differing positions on key issues, both sides expressed optimism about resolving these through continuous consultations and political guidance. Goyal stressed the importance of addressing each other’s sensitivities and confining extraneous issues like labour and climate change to international platforms.
This dialogue underscores the mutual desire to strengthen trade ties and foster a partnership that benefits businesses and effectively addresses global economic challenges. The collaboration is poised to enhance India’s economic integration with the EU, paving the way for sustainable and innovative growth.
Source: Economic Times