European Union Negotiators In Delhi This Week As Crucial India-EU FTA Talks Advance Amid Trump Tariffs. What To Expect?

(MENAFN- Live Mint) India and the European Union (EU) will hold the next round of crucial negotiations to overcome differences in areas of rules of origin, market access and duties on wine and dairy products this week.

Two top EU negotiators, in charge of trade and agriculture, are coming to India this week to conclude the ambitious free trade agreement (FTA) soon, news agency PTI said. This comes days after Prime Minister Narendra Modi and European Union leaders discussed an“early conclusion” of the India-EU FTA.

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European Commission agriculture commissioner Christophe Hansen and trade chief Maros Sefcovic will be in India to hold talks with their Indian interlocutors as both sides look to seal the FTA by the end of this year. The two Commissioners, who are equivalent to Cabinet Ministers, will be leading a 30-member negotiating team from Brussels and will meet their counterparts in Delhi, Commerce Minister Piyush Goyal and Agriculture Minister Shivraj Singh Chouhan.

Before the high-profile visit, the 13th round of talks on the FTA will begin on 8 September. While the 13th round of negotiations for the FTA will be held this in New Delhi, the next round has been slated for early next month in Brussels.

According to reports, the meetings will focus on more substantial issues such as non-tariff barriers, market access, and public procurements.

The trade deal assumes significance amid turbulence created by the tariff policies of the US administration . It is also significant since it follows the announcement of the EU-US deal. The EU has indicated flexibilities for the US on the contentious Carbon Border Adjustment Mechanism

The European Union is India's biggest trade partner, with bilateral trade in goods recording $135 billion in the financial year 2023-24.

PM Modi speaks with Ursula

On 4 September, Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen and President of the European Council Antonio Costa spoke on the phone and discussed“early conclusion of the India-EU FTA”

The two sides have already concluded negotiations on 11 chapters that included customs and trade facilitation, dispute settlement, digital trade, sustainable food system, small and medium-sized enterprises, competition and subsidies and capital movements, news agency PTI said.

The sources said negotiations on several key chapters, including rules of origin and market access, have yet to be concluded.

New politico-strategic vision

Besides the trade deal, India and the EU are also in the process of firming up a series of transformative initiatives, including a new politico-strategic vision and key foundational frameworks to expand defence ties – moves that came against the backdrop of increasing geopolitical uncertainty.

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The EU will unveil its new strategic vision for ties with India on 17 September that will comprise key elements of its futuristic outlook for relations with New Delhi.

The new measures are expected to be unveiled at the India-EU annual summit that is likely to be held in India within the first few months of next year.

The two sides will also hold a series of high-level meetings and talks in the next three months, including a visit to India by the EU's Political and Security Committee, which comprises envoys of the bloc's 27 member nations.

The India-EU counter-terror talks are also slated for this month in Brussels, while the Standing Committee of the EU parliament on trade will visit New Delhi in October. The Indo-Pacific ministerial forum will follow on November 20-21.

The next meeting of the EU-India Trade and Technology Council (TTC) is also likely to take place in November. The foreign policy and security dialogue between the two sides is also set to be held in Delhi.

The EU's High Representative for Foreign Affairs and Security Policy, Kaja Kallas , is expected to visit India either in December or in January.

Finding 'right equilibrium'

There are also issues relating to non-tariff barriers as well but both sides are hopeful of resolving all contentious matters by finding the "right equilibrium".

The new strategic vision for India-EU ties will be analysed by various member nations before it is ratified.

Also Read | India, EU push for trade pact by 2025, focus on market access and innovation

The vision document, set to be the guiding light for the next phase of India-EU relations, is expected to be adopted at the summit.

The sources said that to boost defence cooperation, the two sides are negotiating a security of information agreement and two other frameworks, with the larger aim of ramping up defence ties, including jointly developing military equipment and hardware.

The upcoming meeting of the TTC assumes significance.

The TTC was unveiled in 2022 to facilitate the exchange of critical technologies in various domains, including artificial intelligence, quantum computing, semiconductors, and cybersecurity .

The TTC with India was the European Union's second such technology partnership after the first one with the United States that was firmed up in June 2021.

What did Jaishankar say?

India would like to see its negotiations with the European Union for a free trade agreement move to a "decisive conclusion" soon, External Affairs Minister S Jaishankar said last week

Jaishankar made the remarks at a joint media briefing after holding wide-ranging talks with his German counterpart, Johann Wadephul .

The external affairs minister said the talks focused on boosting bilateral ties in areas of economy, climate change, defence, and technology.

India would like to see its negotiations with the European Union for a free trade agreement move to a 'decisive conclusion' soon.

Jaishankar said Wadephul told him that Germany will put its full weight behind the India-EU FTA.

(With PTI inputs)

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