Piyush Goyal Set to Visit London, Oslo, and Brussels for Trade Discussions

New Delhi, April 20 (NationPress) Commerce and Industry Minister Piyush Goyal is scheduled for a five-day trip to London, Oslo, and Brussels starting on April 28, aimed at bolstering India's trade and investment partnerships with the UK, Norway, and the European Union, as per a senior official.

The London segment of the journey focuses on finalizing discussions for the anticipated free trade agreement between India and the UK, with negotiations reaching a critical phase, according to the official.

The Oslo visit comes on the heels of India having inked a comprehensive free trade agreement with the four-nation European bloc EFTA in March of last year, which is expected to go into effect this year. EFTA includes Iceland, Liechtenstein, Norway, and Switzerland.

In March of last year, both parties signed the Trade and Economic Partnership Agreement (TEPA). India has secured a commitment of $100 billion in investments over a period of 15 years from this grouping, while allowing for the import of products like Swiss watches, chocolates, and cut and polished diamonds from the region at reduced or zero tariffs as part of the agreement.

Negotiations for a trade agreement with the 27-nation European Union are also gaining momentum. India and the EU are examining the feasibility of an early harvest agreement prior to finalizing a comprehensive deal. The 11th round of negotiations is set to take place from May 12–16 in New Delhi.

Earlier this month, Goyal emphasized the necessity for significant measures to eliminate existing trade barriers to expedite the signing of a Free Trade Agreement (FTA) with the EU.

The minister pointed out that both parties must gain a more profound understanding of the obstacles hindering the agreement, as there is immense potential to enhance the current bilateral trade figure of $15 billion.

Additionally, he stressed the importance of promoting investments between India and Italy, facilitating seamless trade between businesses.

During a meeting in Delhi last month, Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen agreed to accelerate efforts to finalize the India-EU free trade agreement by year-end.

This meeting came amidst substantial tariff increases proposed by US President Donald Trump against all countries under his 'America First' policy, which poses a threat to global trade and increases uncertainty in the international economy.

Modi and the EU President committed to instruct their respective negotiating teams to work towards a balanced, ambitious, and mutually beneficial FTA. Officials were directed to collaborate as trusted partners to improve market access and eliminate trade barriers, as well as advance discussions on an Agreement on Investment Protection and an Agreement on Geographical Indications.

However, reaching an agreement will be intricate, with significant concessions anticipated from both parties across various sectors including cars, whisky, pharmaceuticals, and textiles.

The EU is urging India to reduce tariffs on cars, wine, whisky, and certain agricultural products. Conversely, India seeks broader market access and lower tariffs for vital exports such as pharmaceuticals, textiles, and apparel.

The EU stands as India's largest trading partner, accounting for €124 billion in goods trade in 2023, or 12.2% of total Indian trade. Additionally, trade in services between the EU and India approached €60 billion in 2023, nearly double the figure from 2020, with a third of that attributed to digital services, as reported by the World Economic Forum.

Trade between India and the EU has surged by approximately 90% over the past decade; however, discussions surrounding a free trade pact have stalled due to stark differences between India and the 27-nation bloc in sectors like agriculture, automobiles, and pharmaceuticals.