India-EU differ over rules of origin criteria; delays FTA tariff discussions

New Delhi, July 3 (KNN) The tariff negotiations under the Free Trade Agreement (FTA) between India and EU is facing a major hurdle as both the parties have different opinions regarding rules of origin criteria.

A senior government official told Business Standard that India wants conservation rules of origin, while the EU wants India to follow more liberal criteria.

“Five rounds of negotiations are over, but we have not yet finalised the criteria for rules of origin,” said the government official seeking anonymity.

Earlier this year EU had released a report after the conclusion of the Fourth Round of Negotiations in Brussels in March.

EU said constructive decisions took place on the rules of origin. Negotiators focused on the general requirements (section A) where some progress was made.

Section B was briefly disused. Draft product-specific rules have not been tabled yet, said the bloc.

The fifth round of talks took place in New Delhi from June 19-23 and both the side have not yet released a statement on it.

Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports, as per the WTO.  (KNN Bureau)