India, EU Conclude 11th Round of FTA Talks; Agree on Two-Phase Deal

• India and EU conclude 11th FTA talks, agree on two-phase deal approach.
• Focus on core trade issues amid global uncertainties, says Commerce Secretary Barthwal.
• India-EU trade reached $137.41 billion in 2023-24, EU largest goods partner.

India and the European Union (EU) have concluded the 11th round of negotiations on the proposed Free Trade Agreement (FTA), with both sides agreeing to finalize the deal in two phases, according to an official source.

"The 11th round of talks concluded on May 16," the official said.

The decision to adopt a two-phase approach comes amid a volatile global trade environment, influenced significantly by U.S. tariff measures initiated during the presidency of Donald Trump.

Negotiators focused discussions on key areas such as market access for goods, services, and investment. India has previously adopted a similar phased strategy in its trade negotiations with Australia and is following a comparable approach with the United States.

Commerce Secretary, Sunil Barthwal had earlier emphasized prioritizing core trade issues for early resolution. "If some of the issues which may not be very core to the trade, maybe taking some more time, then it is better to focus on core trade issues. So, we say that first things first... We are also discussing with the EU what can be the early harvest of the first tranche, where we can do faster," he said.

Also read: GE Vernova T&D India

The EU has pushed for substantial duty reductions on automobiles and medical devices, as well as tax cuts on products such as wines, spirits, meat, and poultry. It is also advocating for a stronger intellectual property rights regime.

Commerce and Industry Minister Piyush Goyal visited Brussels on May 1 to assess the progress of the negotiations.

Negotiations between India and the 27-member EU bloc were resumed in June 2022 after being stalled since 2013 due to disagreements over market access and trade liberalization.

On February 28, Prime Minister Narendra Modi and the President of the European Commission committed to sealing the long-awaited Free Trade Agreement by the end of 2025.

The FTA discussions span 23 broad policy chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.

The EU market accounts for about 17 percent of India's total exports, while EU's exports to India make up 9 percent of its total overseas shipments.