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03 May, 2025
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India-EU FTA: India demands as much focus on non-tariff barriers as on tariffs
@Source: thehindubusinessline.com
India has sought as much focus on sorting out non-tariff barriers faced by exporters as on bringing down tariffs to ensure meaningful progress in the ongoing talks on the proposed India-EU Free Trade Agreement (FTA), according to the Commerce Department. Commerce & Industry Minister, Piyush Goyal met European Commissioner for Trade and Economic Security, Maroš Šefčovič, in Brussels on Thursday, and both reaffirmed their intention to conclude the India-EU FTA negotiations by the end of 2025, per a statement issued by the Commerce Department on Friday. “Both sides reiterated their aim to address pending issues in a spirit of mutual respect and pragmatism, including at the next round scheduled to be held from 12-16 May 2025 in New Delhi,” the statement noted. The EU countries have much lower average tariffs than India, but the non-tariff barriers, such as quality norms and regulatory hurdles, are high. The full potential of an FTA with the bloc can be fully realised by Indian exporters only if the non-tariff barriers are lowered so that they don’t impede market access, according to officials. “India emphasised that meaningful progress in trade negotiations requires equal focus on non-tariff barriers alongside tariff discussions and regulatory frameworks must be inclusive, proportionate, and avoid restricting trade,” the release stated. high-level engagement Commitment by the Indian Minister and the European Commissioner to speedily conclude the FTA builds on the strategic direction given by Prime Minister, Narendra Modi and President of the European Commission, Ursula von der Leyen during the visit of the EU College of Commissioners to New Delhi, in February 2025. The high-level engagement between Goyal and Šefčovič, 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 release said. “The meeting highlighted the progress made across multiple negotiating tracks and emphasised the importance of maintaining the ongoing momentum through monthly negotiating rounds and continued virtual engagement,” it added. Both sides expressed optimism that the agreement, once concluded, will help enhance market access, supporting regulatory cooperation, and fostering innovation and competitiveness on both sides. The FTA talks between India and the EU first began in 2007 but reached a stalemate in 2013 over issues such as market access for specific goods, specifically automobiles and wines & spirits. In June 2022, India and the EU re-started talks. Published on May 2, 2025
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