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Commerce and Industry Minister Piyush Goyal held another round of discussions with European Commissioner for Trade Maros Sefcovic in Brussels, marking their second interaction in under a month.

The meeting reflected the sustained push by both sides to accelerate progress on the proposed India-European Union free trade agreement (FTA), negotiations for which are currently underway, reported PTI.

Goyal flew to Brussels on May 23 after a visit to Washington. India’s chief negotiator L Satya Srinivas, along with his team, had already reached the European Union headquarters to continue the deliberations. The discussions are part of a broader effort to finalise an early harvest agreement, seen as a stepping stone towards a full-fledged FTA.

Taking to social media, Sefcovic expressed optimism after the meeting. “Delighted to welcome my friend and counterpart @PiyushGoyal. We continue to make progress. Let’s maintain the momentum - with hard work, clear focus - and I look forward to our next meeting soon,” he posted on X. Goyal responded on the platform, stating, “We remain committed to the shared prosperity of India and the EU. Let us keep this pace going!”

Focus on Early Harvest Deal by July

The two regions are aiming to conclude an interim trade deal by July. This preliminary pact is expected to address several key areas, including intellectual property rights, government procurement policies, tariff structures, and non-tariff trade barriers.

The most recent round—the eleventh—of FTA negotiations took place in New Delhi on May 16. “We are looking for an early harvest. We are trying to do it as early as possible,” an official involved in the discussions commented recently.

This phased approach mirrors India’s strategy with other trade partners, such as Australia. Given current global uncertainties, including past US tariff policies under the Trump administration, both India and the EU have agreed to break up the FTA process into two stages.

Strategic Interests and Sectoral Demands

The European Union is pressing for considerable reductions in import duties on automobiles, medical equipment, and products like wines, spirits, meat, and poultry. Additionally, it is seeking a strong intellectual property rights regime. For India, the FTA could make exports such as textiles, pharmaceuticals, steel, petroleum products, and electrical machinery more competitive in the European market.

Negotiations between India and the EU resumed in June 2022, following an eight-year hiatus. The earlier round of talks had collapsed in 2013 due to disagreements over the extent of market liberalisation.

In a significant political development earlier this year, Prime Minister Narendra Modi and the European Commission President agreed on February 28 to conclude the long-pending trade deal by the end of 2025.

India-EU Trade: A Growing Partnership

India and the 27-nation EU bloc are negotiating across 23 policy chapters, ranging from Trade in Goods and Services to Investment, Sanitary and Phytosanitary Measures, Government Procurement, and Sustainable Development, among others.

Bilateral goods trade between the two reached $137.41 billion in FY24, with India’s exports standing at $75.92 billion and imports at $61.48 billion. The EU continues to be India’s largest trading partner in goods, accounting for roughly 17 per cent of the country’s total exports. Conversely, exports from the EU to India represent about 9 per cent of the EU’s total global shipments. In addition, bilateral trade in services was estimated at $51.45 billion in 2023.

As both sides intensify efforts to finalise a deal, the outcome could redefine trade flows between two of the world’s major economies.