India has told the European Union (EU) to ensure that ongoing Free Trade Agreement (FTA) negotiations give equal weight to non-tariff barriers (NTBs) and that regulatory frameworks remain inclusive, proportionate, and avoid restrictive trade.
These concerns were raised by commerce and industry minister Piyush Goyal during his meeting with European commissioner for trade and economic security Maroš Šefčovič in Brussels on Thursday.
The EU has some of the toughest standards on products entering into its territory. These products require multiple certifications so ensure that they comply with EU standards. In addition to these, new regulations such as the Carbon Border Adjustment Mechanism (CBAM) and the Deforestation Regulation (DR) are expected to further impact exporters.
The CBAM imposes a carbon tax on certain industrial imports, while the Deforestation Regulation restricts agricultural imports grown on land cleared of forests.
“The meeting highlighted the progress made across multiple negotiating tracks and emphasised the importance of maintaining the ongoing momentum through monthly negotiating rounds and continued virtual engagement,” the commerce ministry said.
Both sides reiterated their commitment to resolving pending issues “in a spirit of mutual respect and pragmatism,” including at the next round of talks scheduled for May 12–16 in New Delhi, the statement added. They also reaffirmed their aim to conclude FTA negotiations by the end of 2025.
India and the EU began FTA negotiations in June 2022, and have since held 10 rounds of discussions. Both parties are exploring the possibility of concluding the FTA in phases, to meet the deadline. Discussions on a tranche-based approach are ongoing within the 27-member EU bloc.
Goyal is currently on a three-nation tour of Europe, covering key trade partners. In the UK and Norway, he held discussions with his counterparts on trade and investment. He landed in Brussels on Thursday and completed his engagements there on Friday. Goyal is expected to return to the UK to announce the conclusion of negotiations on the free trade agreement and bilateral investment treaty (BIT) with the UK.
Goyal’s visit covered all important trade partners with whom India is negotiating an FTA or already concluded one. His Oslo visit that ended on Wednesday covered important members of the European Free Trade Association (EFTA), Norway. With EFTA, India had signed a Trade and Economic Partnership Agreement (TEPA) in March last year. It is expected to become operational by June as the national parliaments of all four EFTA members – Iceland, Liechtenstein, Norway, and Switzerland – have ratified it. Now the pact is awaiting referendum in Swiss cantons (equivalent to states in India).