News Brief
India–European Union Trade Talks Enter Crucial Phase: Piyush Goyal Meets EU Commissioner Sefcovic Ahead Of Brussels Visit
The EU and India Free Trade Agreement. (Photo: Valdis Dombrovskis/Twitter)
Commerce and Industry Minister Piyush Goyal held a key meeting on Wednesday (22 October) with EU Trade Commissioner Maros Sefcovic to discuss these unresolved issues in the proposed India-EU Free Trade Agreement (FTA).
Goyal described the engagement as “productive,” focused on the positive resolution of outstanding matters, and said it was a preparatory step ahead of his scheduled visit to Brussels next week, aimed at giving fresh impetus to the negotiations.
India and the European Union (EU) had agreed to maintain continuous engagement at the chief negotiators’ level as the deadline for their free trade agreement (FTA) approaches, after the 14th formal round of talks concluded in Brussels a couple of weeks ago.
Despite this sustained focus, a major breakthrough continues to elude both sides, as per a Financial Express report.
The European Commission (EC) had confirmed that, while no further formal rounds are planned, discussions at the political level will continue alongside “continuous intensive” negotiations at the technical level.
Commerce and Industry Minister Piyush Goyal is expected to visit Brussels later this month to give a further push to the stalled talks.
During the 6-10 October meeting, negotiators exchanged views on the Trade in Goods chapter and market access offers, but without substantial progress.
Both sides outlined their expectations for tariff liberalisation, red lines, and flexibilities, particularly concerning the pace and extent of tariff reductions.
India, meanwhile, seeks duty-free access for labour-intensive products and emerging sectors such as automobiles and electronics, while raising concerns over the EU’s impending Carbon Border Adjustment Mechanism (CBAM), which could impose new taxes on steel, aluminium, cement, and fertiliser imports from January 2026.
In services trade, the EC noted that very few differences remain, with text nearing finalisation.
Chapters on Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) saw constructive progress, while significant gaps persist in Trade and Sustainable Development and Investment.
Indian officials also stayed behind in Brussels to resolve differences on Rules of Origin, which determine domestic value addition required for concessional tariffs.
The India-EU FTA, launched in June 2022, spans 23 chapters, including Trade in Goods, Services, Investment, Intellectual Property Rights, and Sustainable Development, with agreement already reached on six chapters.
