India-EU trade pact to address tariff and non-tariff barriers equally
New Delhi, May 2, 2025
Commerce Minister Piyush Goyal says India-EU trade deal to focus on tariff and non-tariff barriers alike, with both sides targeting a meaningful pact by end of 2025
The proposed trade agreement between India and the European Union (EU) will have equal focus on tariff and non-tariff barriers, Commerce and Industry Minister Piyush Goyal has said.
The minister further said that regulatory frameworks must be inclusive, proportionate, and avoid restricting trade. Goyal was speaking after his meeting with Maroš Šefčovič, Commissioner of the European Commission for Trade and Economic Security, on Thursday in Brussels.
“We have given equal focus on both sides to non-tariff barriers along with tariff in our trade talks. We are both equally concerned to make the market access very meaningful for both countries while respecting the sensitivities that our businesses or our economies may have in certain sectors. The agreement, once concluded, will certainly be a transformative pillar of the deep partnership between the European Union and India, enhancing market access, aligning our regulatory practices and boosting innovation and competitiveness,” Goyal said in an address.
During their meeting, Goyal and Šefčovič also discussed the critical role of investments and mobility and agreed to build a framework with the EU that would help in advancing both economies.
An official statement from the Department of Commerce on Friday said that Goyal and Šefčovič engaged in a forward-looking and substantive dialogue to address global trade challenges and reaffirmed the conclusion of the India-EU free trade agreement (FTA) by the end of 2025.
“The high-level engagement underscores the strategic importance both partners attach to building a commercially meaningful, mutually beneficial, balanced, and a fair trade partnership that supports economic resilience and inclusive growth,” the statement said.
The meeting emphasised the importance of maintaining the ongoing momentum through monthly negotiating rounds and continued virtual engagement. Both sides reiterated their aim to address pending issues.
The 11th round of negotiation is scheduled to be held from 12 to 16 May 2025 in New Delhi.
Last month, a senior Commerce Department official said India and the trade bloc will follow a ‘pragmatic’ approach and attempt to finalise an ‘early harvest’ or first tranche of the long-pending trade deal, which may be easier to conclude. The early harvest deal will focus on core trade issues such as rules of origin, tariff, customs facilitation, among others. Typically, full-fledged, comprehensive free trade agreements (FTA) may take longer to conclude.
However, the EU side did not confirm whether an official decision has been taken to go ahead with an early harvest deal. “Both sides are focused on achieving a commercially meaningful market access package by the end of 2025, in line with the objective set by President von der Leyen and Prime Minister Modi on 28 February,” an EU official said in response to Business Standard’s query.
[The Business Standard]
