Differences On Steel & Automobiles Impede India–EU FTA Talks

New Delhi, Oct 13 (KNN) Negotiations for a comprehensive free trade agreement (FTA) between India and the European Union (EU) are progressing steadily, although differences remain on sectors such as steel, automobiles, and non-tariff barriers, a senior Indian official said on Monday.

The 14th round of talks between Indian and EU officials concluded last week in Brussels. 

The five-day discussions, which began on October 6, focused on resolving outstanding issues across goods and services to facilitate an early conclusion of the negotiations. 

"Talks are progressing well. There are issues which need resolution such as steel and automobiles. No major issue is pending in agri," the official said, reported PTI.

In the closing days of the round, 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.

The discussions are part of ongoing efforts to finalise a comprehensive FTA, an investment protection agreement, and a pact on geographical indications, which India and the EU resumed in June 2022 after a hiatus of over eight years. Previous talks had stalled in 2013 due to disagreements on market access.

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. 

If concluded, the agreement could boost the competitiveness of Indian exports to the EU, including ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery.

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.

Bilateral trade in goods between India and the EU stood at USD 136.53 billion in 2024-25 (exports of USD 75.85 billion and imports of USD 60.68 billion), making the EU India’s largest trading partner for goods. 

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. Bilateral trade in services was estimated at USD 51.45 billion in 2023.

(KNN Bureau)