Trade leaders of India and the European Union (EU) have reaffirmed their strong political resolve to address pending issues in the free trade agreement (FTA) negotiations and renewed their determination to conclude the pact at the earliest.
During meetings between Commerce and Industry Minister Piyush Goyal and the EU’s Commissioner for Trade and Economic Security Maros Sefcovic in Brussels on January 8 and 9, detailed deliberations were held across key areas of the proposed agreement.
Both sides took note of the steady progress achieved across various negotiating tracks, including market access for goods, rules of origin, and services. The meetings marked a decisive step forward in the India-EU Free Trade Agreement (FTA) negotiations, a statement by the Ministry of Commerce and Industry said.
Goyal and Sefcovic also provided guidance to their respective negotiating teams to resolve pending issues and expedite the agreement.
The visit capped a week of intensive diplomatic and technical engagements in Brussels, underscoring the political resolve on both sides to deliver a comprehensive deal, the commerce ministry statement added.
The ministerial engagement was preceded by high-level discussions between Commerce Secretary Rajesh Agrawal and the Director-General for Trade at the European Commission Sabine Weyand on January 6–7. The official-level meetings focused on stocktaking the progress achieved across various negotiating tracks. The officials worked to “narrow divergences” and ensure clarity on outstanding issues, clearing the path for the ministerial dialogue.
Closing Gaps Ahead of the Republic Day Milestone
The week-long discussions came days ahead of the India-EU Summit in New Delhi on January 27. The summit, held every two years, carries a strong possibility of an announcement on the conclusion of the FTA negotiations.
Ahead of the summit, the EU’s top leadership — European Commission President Ursula von der Leyen and European Council President Antonio Costa —will be the chief guests at India’s Republic Day celebrations.
Trade Dynamics and the Carbon Tax Challenge
The EU is currently India’s largest trading partner and a key investor. Bilateral merchandise trade between India and the EU stood at $90.7 billion in 2024–25, with India’s exports at $51.0 billion and imports at $39.7 billion. In contrast, bilateral goods trade between India and the US was $84.2 billion, with Indian exports at $53.0 billion and imports at $31.2 billion.
India’s export performance in Europe continues to strengthen this year as well, with Spain, Germany, Belgium, and Poland emerging as stable and increasingly important demand centres.
India and the EU began FTA negotiations in July 2022 and have since completed 14 rounds of talks. The proposed agreement covers 23 policy areas organised into chapters, most of which have already been concluded.
India has also raised concerns over the EU’s imposition of a carbon tax through the Carbon Border Adjustment Mechanism (CBAM), which is expected to put Indian exporters of steel and aluminium at a serious disadvantage.