Will Commerce Secretary Agrawal Expedite FTA Talks in Brussels This Week?
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Synopsis
The impending visit of Commerce Secretary Rajesh Agrawal to Brussels is poised to catalyze discussions on the India-EU free trade agreement. With both sides eager to finalize this agreement by year-end, the negotiations promise significant opportunities for enhancing bilateral trade and investment.
Key Takeaways
- Commerce Secretary Rajesh Agrawal will meet with EU Director General for Trade this week.
- Both parties aim to finalize the India-EU free trade agreement by the end of the year.
- Current negotiations cover 23 policy areas, with key points still unresolved.
- The FTA promises significant opportunities for bilateral trade and investment.
- The EU is India's largest trading partner, highlighting the importance of this agreement.
New Delhi, Oct 7 (NationPress) Commerce Secretary Rajesh Agrawal is set to travel to Brussels by the end of this week for discussions with European Commission Director General for Trade, Sabine Weyand, aimed at accelerating the ongoing negotiations regarding the proposed India-EU free trade agreement, as stated by Commerce and Industry Minister Piyush Goyal on Tuesday.
The Minister highlighted that there have been very productive discussions taking place between EU and Indian officials in Brussels.
India aspires to collaborate in a spirit of mutual respect to ensure a fair and balanced free trade agreement, he noted.
Currently, the Minister is on a two-day visit to Qatar to enhance India’s bilateral trade and investment relationships with the Gulf country, accompanied by officials and a business delegation to discover new avenues for strengthening economic ties.
“Once this round concludes, Commerce Secretary Rajesh Agrawal will head to Brussels for a meeting with his counterpart, DG Sabine Weyand, at the end of this week. Following that, we will outline the next steps,” Goyal remarked.
EU President Ursula von der Leyen and Prime Minister Narendra Modi have set a goal to finalize the FTA by the end of this year, with Goyal asserting that both parties are committed to completing the negotiations before the deadline.
“The innovation and technology landscape of the European Union presents significant opportunities for Indian businesses. By leveraging each other’s strengths, EU and Indian companies can collaboratively serve the global market,” he emphasized.
A contingent of Indian officials, spearheaded by Special Secretary in the Department of Commerce, L Satya Srinivas, is currently in Brussels for the 14th round of negotiations. This new phase of discussions will span five days, followed by another meeting between Commerce Minister Piyush Goyal and his EU counterpart Maros Sefcovic.
Piyush Goyal is anticipated to revisit Brussels on October 27-28 to further advance the dialogue.
The proposed India-EU free trade agreement encompasses 23 policy areas, or chapters, with at least two—market access and rules of origin—yet to be finalized.
EU Ambassador Herve Delphin remarked last week that both India and the EU should leverage the free trade agreement (FTA) to boost bilateral trade and investment during a time when “certain countries” are raising tariffs or restricting market access, subtly referring to the US.
“The FTA can unlock new prospects for EU and Indian enterprises and establish conditions to significantly enhance our bilateral trade and investment. While some countries are tightening their markets, we should utilize the FTA to diversify trade, mitigate uncertainties, and fortify our supply chains,” he stated.
“The EU is prepared to finalize a meaningful agreement. We eagerly anticipate the upcoming round and further discussions towards a mutually advantageous deal,” Delphin added.
Delphin further noted that the EU is India's largest trading partner, with bilateral goods trade amounting to EUR 120 billion, surpassing both the US and China. Including services, our bilateral trade has reached EUR 180 billion. This is an impressive figure, but there exists vast potential for growth considering that the EU and India rank as the 2nd and 4th largest economies globally.
Point of View
It is vital to recognize that the ongoing negotiations between India and the EU could redefine trade dynamics. The urgency shown by both parties reflects a strategic move towards enhancing bilateral relations, particularly in a time when global trade is under pressure. This agreement holds the promise of not just economic growth but also a deeper collaboration in technology and innovation.
NationPress
07/10/2025
Frequently Asked Questions
What is the India-EU free trade agreement?
The India-EU free trade agreement aims to reduce tariffs and promote trade between India and the European Union across various sectors.
Why is the visit to Brussels significant?
The visit is crucial as it aims to expedite discussions on the free trade agreement, with both sides eager to finalize the deal by year-end.
What are the main areas of negotiation?
The negotiations cover 23 policy areas, including market access and rules of origin, which are key points yet to be resolved.
How will the FTA benefit India?
The FTA is expected to enhance bilateral trade, create new investment opportunities, and strengthen supply chains for Indian businesses.
What is the current status of India-EU trade?
The EU is India's largest trading partner, with bilateral trade in goods reaching EUR 120 billion and EUR 180 billion when services are included.
