India, EU hold FTA talks; reaffirm commitment to protect farmers, MSMEs

New Delhi: India and the European Union (EU) on Friday held talks in Brussels on the proposed Free Trade Agreement (FTA) and reaffirmed their commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs.

Commerce and Industry Minister Piyush Goyal is on a two-day official visit to the EU headquarters for the talks.

He has held high-level talks with EU Trade and Economic Security Commissioner Maros Sefcovic for securing a mutually beneficial FTA.

"During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains," Goyal said in a social media post.

The ministerial engagements follow a week of intensive deliberations in Brussels, building upon the groundwork laid during high-level discussions held earlier this week (6-7 January) between India's Commerce Secretary Rajesh Agrawal and Director General for Trade of the European Commission Sabine Weyand.

These talks are important as both sides are looking at concluding the negotiations at the earliest. The India-EU Summit is expected on January 27 here and the top EU leadership will grace the Republic Day parade as the chief guest on January 26.

On December 15, Agrawal stated that negotiations between India and the 27-nation bloc, the EU, have entered the "most difficult" stage, and both sides are engaged to bridge the differences and close the talks soon.

So far 16 rounds of negotiations have been held.

India is pushing for zero-duty access for its labour-intensive sectors, such as textiles, and leather. On the other hand, the EU is demanding significant duty cuts in automobiles, medical devices, wine, spirits, meat, poultry, and a strong intellectual property regime.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over nine years. The talks were stalled in 2013 due to differences on the level of opening up markets.

India's bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.