11th Round of India-EU FTA Negotiations Begins May 13
New Delhi, May 11 — India and the European Union (EU) will resume negotiations for their long-pending free trade agreement (FTA) on Monday, May 13, in New Delhi. This marks the 11th round of talks, with both sides aiming to wrap up the first phase of the pact as soon as possible amid global trade uncertainties.According to a senior official, the discussions will continue through May 16 and focus on finalizing areas where consensus has already been achieved. These will be included in the first tranche of the agreement, while the remaining complex issues are expected to be resolved in a second phase by year-end.
Two-Phase Approach Amid Global Trade Challenges
The FTA is being structured in two phases to expedite progress, a strategy India has also adopted in its trade deals with Australia and the United States. This phased approach comes in the wake of rising global trade protectionism, especially triggered by the tariff policies of former US President Donald Trump.Commerce Secretary Sunil Barthwal emphasized the need to prioritize core trade matters. "If some of the issues which may not be very core to trade take more time, then it is better to focus on core issues first... We are also discussing with the EU what the early harvest of the first tranche can be," he said.
Key Agenda: Market Access, IPR, and Tariff Reductions
Talks in the previous round focused on market access in goods and services, investment protection, and government procurement. In this round, discussions are expected to further address the EU’s demands for significant tariff cuts on products like automobiles, medical devices, wines, spirits, and meat products. The EU is also pushing for stronger enforcement of intellectual property rights.India, on the other hand, seeks to make its key exports—garments, pharmaceuticals, petroleum products, steel, and electrical machinery—more competitive in the EU market through the agreement.
Strong Trade Ties and High-Level Engagement
India’s Commerce and Industry Minister Piyush Goyal visited Brussels on May 1 to assess the progress of the FTA negotiations. The talks resumed in June 2022 after being stalled since 2013 due to disagreements over market access and regulatory issues.On February 28, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to sealing the deal by the end of 2025.
A Comprehensive Agreement Across 23 Chapters
The FTA under discussion is expansive, covering 23 policy areas including:- Trade in Goods and Services
- Investment
- Rules of Origin
- Customs and Trade Facilitation
- Sanitary and Phytosanitary Measures
- Technical Barriers to Trade
- Government Procurement
- Dispute Settlement
- Intellectual Property Rights and Geographical Indications
- Sustainable Development
EU: India's Largest Trading Partner in Goods
In FY 2023-24, bilateral trade in goods between India and the EU stood at USD 137.41 billion. Indian exports totaled USD 75.92 billion, while imports reached USD 61.48 billion. The EU accounts for nearly 17 per cent of India's total exports, making it the country’s top trading partner in goods. Bilateral trade in services was valued at USD 51.45 billion in 2023.In addition to the FTA, both sides are negotiating an investment protection agreement and a separate pact on geographical indications.
The renewed momentum in the India-EU trade relationship follows a recent milestone between India and the UK, which on May 6 announced the conclusion of their FTA negotiations.
