GTRI Calls For Dismantling EU Non-Tariff Barriers To Secure Export Gains

New Delhi, Jan 21 (KNN) Trade think tank Global Trade Research Initiative (GTRI) has called on India to press the European Union (EU) to dismantle non-tariff barriers (NTBs) under the proposed India–EU Free Trade Agreement (FTA), warning that tariff cuts alone may not deliver meaningful export gains if regulatory hurdles persist.

FTA Nears Conclusion

Negotiations for the India–EU FTA, launched in 2007, are nearing completion after nearly 18 years. An announcement is expected on January 27, 2026, during a high-level EU delegation visit to New Delhi coinciding with the state visit of European Council President Antonio Costa and European Commission President Ursula von der Leyen, reported PTI.

Regulatory Hurdles Across Sectors

GTRI said Indian exporters face delays in pharmaceutical approvals, stringent sanitary and phytosanitary norms for agricultural products, and complex testing and certification requirements. 

Basmati rice, spices, tea and marine products often face heightened inspections, while manufacturing exporters contend with compliance costs under regimes such as the EU’s REACH framework and climate-related rules, disproportionately affecting MSMEs.

Carbon Border Tax Concerns

GTRI founder Ajay Srivastava said, "Tariff liberalisation alone will not deliver proportional export gains unless accompanied by regulatory cooperation, faster approvals and mutual recognition in any trade deal with the EU." 

He highlighted concerns over the EU’s Carbon Border Adjustment Mechanism (CBAM), effective from January 1 for carbon-intensive products like steel and aluminium. 

Srivastava noted India should seek exemptions or safeguards, noting that compliance costs and reporting requirements could disadvantage MSMEs and skew the balance of the FTA.

"Without exemptions, carve-outs or at least safeguard language (on CBAM), the FTA could become structurally unbalanced, allowing EU goods' duty-free access to India while Indian exports remain constrained by Europe's climate-linked border measures," he added.

Services, Data and Mobility Issues

The think tank noted that EU restrictions on remote service delivery, local office requirements and high salary thresholds limit India’s IT and digital exports. 

India is seeking ‘data-secure’ status under the EU’s General Data Protection Regulation (GDPR) to ease data flows, while also pushing for easier short-term visas, social security totalisation agreements and mutual recognition of professional qualifications.

Procurement, Investment and GI Talks

The EU is seeking access to India’s government procurement market, while India is expected to offer limited concessions. Differences also remain over geographical indications and investment protection, with India favouring its Model Bilateral Investment Treaty to retain regulatory autonomy.

GTRI said addressing NTBs through regulatory cooperation and mutual recognition would be critical to ensure the FTA delivers balanced and tangible benefits for Indian exporters.

(KNN Bureau)