Earlier, CNBC-TV18 had reported that India and the EU look to conclude talks for an early harvest deal by July 2025, like the one it has signed with Australia.
The early harvest deal will include issues like tariff and non-tariff barriers, Intellectual property rights, government procurement, technical barriers to trade, and sanitary and phytosanitary measures.
India and the EU are pursuing a two-stage approach to finalise an FTA, apart from a bilateral investment protection agreement and recognition of geographical indications (GIs) with the 27-member bloc.
Government sources pointed out that five more chapters of the total 23 chapters have been closed in the previous round.
The negotiations span 23 policy areas, including trade in goods and services, investment protection, Customs procedures, technical barriers, intellectual property rights, and sustainable development.
Stating that even European businesses have objected to proposed regulations like the EUDR and CBAM (Carbon Border Adjustment Mechanism) over concerns of business being impacted, sources said that India’s concerns on these regulations have also been communicated as part of negotiations.
As per a government official, the EU has objected to Quality Control Orders (QCOs) by terming them non-tariff barriers (NTBs), to which India has responded by saying that QCOs equally apply to Indian businesses unlike EU’s internal concessions for its small and medium enterprises (SMEs).
In return, India has offered that mutual recognition can be given by both the sides in areas like technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures. The government official added that good relations with the EU are reflected in the ongoing strategic dialogue, with the 27-member bloc displaying sensitivity to India’s flagged concerns.
Over the past two weeks, India’s Commerce and Industry Minister Piyush Goyal met the EU Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, Maroš Šefčovič; the European Commissioner for Agriculture and Food, Christophe Hansen; and ministers from EU member countries—France, Italy, and Sweden—to provide a significant impetus to the ongoing FTA negotiations.
While the EU has sought amendments in India’s Patents Act to allow ‘evergreening’ of patents in pharmaceuticals, India has already refused to accept similar demands from the UK and Switzerland for data exclusivity to protect generic pharma industry as part of FTAs with the UK and the European Free Trade Association (EFTA).
In FY23-24, EU-India bilateral goods trade stood at $137.41 billion, with Indian exports valued at $75.92 billion and imports valued at $61.48 billion making EU India’s largest trading partner in goods. The EU accounts for nearly 17% of India’s total exports, while EU’s exports to India represent 9% of its total overseas sales.