India, European Union to hold next round of free trade agreement talks amid tariff threats
India and the 27-nation European Union (EU) bloc will start the tenth round of negotiations for a proposed free trade agreement from Monday in Brussels amid Trump tariff threats, according to an official.
The talks are expected to focus on resolving remaining issues so that the agreement can be finalised by the end of this year.
During the recent visit of EU Commissioner for Trade and Economic Security Maros Sefcovic, the two sides have discussed ways to accelerate efforts towards a balanced and mutually beneficial trade pact.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen last month agreed to conclude the ambitious India-EU free trade deal by this year amid fears of the Trump administration’s threat of higher tariffs.
“The two sides are scheduled to hold the tenth round of negotiations for the FTA from March 10-14 in Brussels,” the official said.
In June 2022, India and the 27-nation EU bloc resumed the negotiations after a gap of over eight years.
It stalled in 2013 due to differences over the level of opening up of the markets.
The two sides are also negotiating an investment protection agreement and an agreement on Geographical Indications (GIs). According to the think tank Global Trade Research Initiative (GTRI), key sticking points include agricultural tariffs, especially on dairy and wine import duties, automobile tariffs, and regulatory barriers affecting labour-intensive goods. India is reluctant to lower auto import duties and is cautious about committing to EU demands on sustainability and labour standards, it said, adding that services trade remains another contested area, with India seeking easier mobility for professionals and data security recognition under the EU’s GDPR framework (European Union’s General Data Protection Regulation).
