EU Red-Flags Qcos, India CBAM During India-EU FTA Talks

(MENAFN- KNN India) New Delhi, Jun 16 (KNN) Government sources have revealed that negotiations between India and the European Union (EU) for a Free Trade Agreement (FTA) have gained momentum, with the frequency of discussions increasing from quarterly to monthly.

This intensified engagement comes as both sides aim to reach an early harvest deal by July 2025, similar to India's agreement with Australia.

Indian officials have raised concerns over EU regulations like the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), which they argue could disrupt business.

In response, the EU has questioned India's Quality Control Orders (QCOs), calling them non-tariff barriers. However, India has maintained that QCOs apply uniformly to domestic and foreign firms.

The early harvest pact will cover critical issues such as tariff and non-tariff barriers, intellectual property rights, government procurement, technical barriers to trade, and sanitary and phytosanitary measures.

As part of a two-stage approach, India and the EU are also working on a bilateral investment protection agreement and recognition of geographical indications (GIs).

Out of 23 negotiating chapters, five were closed in the previous round, with talks spanning areas like trade in goods and services, investment protection, customs procedures, and sustainable development.

India has proposed mutual recognition in areas such as technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures.

Recent meetings between Commerce Minister Piyush Goyal and EU leaders, including the Trade Commissioner and ministers from France, Italy, and Sweden, highlight the strategic importance of these talks.

In FY23-24, India-EU bilateral goods trade reached USD 137.41 billion, making the EU India's largest trading partner. Indian exports to the EU stood at USD 75.92 billion, while imports totaled USD 61.48 billion.

(KNN Bureau)

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