Fresh negotiations to begin this month on India-EU Free Trade Agreement

After a nine-year lull, India and the European Union have re-launched negotiations for India-EU Free Trade Agreement. Both countries also announced the launch of negotiations for an Investment Protection Agreement at a joint event at the EU headquarters at Brussels. The first round of negotiations to begin on June 27 in New Delhi.

Among the most significant FTAs for India as EU is its second largest trading partner, India-EU merchandise trade registered an all-time high value of $116 billion in 2021-22 with a year-on growth of 43.5 per cent.

In a joint event held at the Headquarters of the European Union (EU) at Brussels yesterday, Union Minister for Commerce and Industry Piyush Goyal and Valdis Dombrovskis, Executive Vice-President of European Commission formally re-launched the India-EU Free Trade Agreement (FTA) negotiations.

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Last year, in the India and EU Leaders’ Meeting held in Porto, an agreement was reached for resuming negotiations for a balanced, ambitious, comprehensive and mutually beneficial FTA and starting fresh negotiations.

This would be one of the most significant FTAs for India as EU is its second largest trading partner after the US. The India-EU merchandise trade has registered an all-time high value of $116.36 Billion in 2021-22 with a year-on growth of 43.5 per cent. India’s export to the EU jumped 57 per cent in 2021-22 to $65 billion. India has a surplus trade with EU.

"Considering that both partners have similar fundamental values and common interests and are two of the largest open market economies, the trade deal will help to diversify and secure the supply chains, boost economic opportunities for our businesses, and bring significant benefits to the people. Both sides are aiming for the trade negotiations to be broad-based, balanced and comprehensive, based on the principles of fairness and reciprocity. There will also be discussions on resolving the Market Access Issues which are impeding the bilateral trade," a commerce ministry official said.

India earlier this year concluded FTAs with Australia and the UAE in a record time. The FTA talks with Canada and the UK are also underway. The FTA negotiations are part of India’s broader strategy to forge balanced trade agreements with key economies and revamp existing trade pacts to improve trade and investment.