NEW DELHI: India and the European Union (EU) are aiming to conclude negotiations for a free trade agreement (FTA) by the end of this year, with both sides emphasizing the need for a mutually beneficial deal.
Commerce and Industry Minister Piyush Goyal on Thursday said the two sides were working to forge a “win-win partnership” through a durable trade pact, while addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA).
Maroš Šefčovič, European Commissioner for Trade and Economic Security, echoed similar sentiments, stressing that despite persistent disagreements, both sides were aligned on the goal. “We are now maximising our efforts to finalise negotiations by the end of the year, as agreed by European Commission President von der Leyen and Prime Minister Modi. We are striving to put in place an economically meaningful, win-win package that brings real added value to businesses and consumers both in Europe and in India,” Šefčovič said.
He described the prospective agreement as “ground-breaking,” adding that it could help the global economy navigate turbulent geopolitical and trade conditions. Goyal, meanwhile, underlined the importance of striking a balanced deal. “Every agreement has some give-and-take to make it balanced,” he said.
Both leaders acknowledged the existence of disagreements but expressed confidence that they could be resolved to ensure a mutually beneficial outcome. “We will not agree on everything. But as major democracies in an increasingly uncertain world, there are many areas where we can work together,” Šefčovič added.
Šefčovič and EU Agriculture Commissioner Christophe Hansen visited India this week for discussions with the Commerce Ministry.
The India-EU FTA negotiations, which resumed in June 2022 after nearly a decade-long pause, have been slowed by differences over issues such as India’s protectionist stance on agriculture and dairy, and the EU’s insistence on implementing the Carbon Border Adjustment Mechanism (CBAM).
India has accelerated its trade engagements in recent years, signing agreements with Mauritius, the UAE, Australia, and the European Free Trade Association (EFTA). The India-UK Comprehensive Economic and Trade Agreement (CETA), signed earlier this year, is pending implementation, while the India-EFTA Trade and Economic Partnership Agreement (TEPA) is expected to come into force once ratified. Parallel negotiations are also underway with partners including Australia, Peru, Chile, New Zealand, and the US.