India and the European Union (EU) will start the 11th round of negotiations on the proposed Free Trade Agreement (FTA) from Monday (May 12). The aim of this conversation is to complete the first phase of the agreement as soon as possible. A government official has given this information to news agency PTI. The European Union team will come to Delhi for the 11th round of talks. These talks will go on till May 16. Both sides have agreed to finalize this agreement in two phases. The initial phase of the agreement will include those areas where there is already agreement. The target has been set to complete the second phase by the end of this year. Issues like goods-services were discussed in 10 rounds of talks In the last 10 rounds of talks, issues like market access in goods, services, investment and government procurement were discussed. India has adopted a similar two-phase negotiation strategy in its trade deal with Australia and is adopting the same approach in talks with the US. EU wants tax cuts on automobiles and medical devices The European Union is demanding a huge reduction in taxes on automobiles and medical devices under this FTA. It is also demanding tax cuts on products like wine, spirits, meat and poultry. The EU is also advocating for an intellectual property rights regime. If the FTA is successfully completed, Indian exports like readymade garments, pharmaceuticals, steel, petroleum products and electrical machinery will become more competitive in the European Union market. On May 1, Piyush Goyal visited Brussels regarding FTA On May 1, Commerce and Industry Minister Piyush Goyal visited Brussels to assess the progress of the FTA talks. Talks resumed in June 2022 after an eight-year pause between India and the 27-member European Union. Talks were halted in 2013 due to disagreement over the extent of market liberalization. On 28 February, Prime Minister Narendra Modi and the President of the European Commission had talked about completing the trade agreement by the end of 2025. 23 chapters are included in the FTA negotiations between India and the European Union. 23 chapters are included in the FTA negotiations between India and the European Union. These include Goods Trade, Services Trade, Investment, Sanitary and Phytosanitary, Technical Barriers in Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defense, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indication and Sustainable Development. Bilateral trade stood at $137.41 billion in 2023-24 India’s bilateral trade in goods with the European Union reached $137.41 billion (export: $75.92 billion; import: $61.48 billion) in 2023-24, making the European Union India’s largest trading partner in goods. The EU’s share in India’s total exports is around 17% The European Union’s share in India’s total exports is around 17%. India’s share in the European Union’s total exports is around 9%. The bilateral trade in services between the two countries reached $51.45 billion in 2023. Apart from the FTA, India and the European Union are also negotiating an Investment Protection Agreement and an Agreement on Geographical Indications (GIs). On May 6, India and the United Kingdom (UK) announced the conclusion of negotiations for a free trade agreement. How many types of trade agreements are there? Free trade agreements are given different names according to their nature. These include PTA (preferential), RTA (regional) and BTA (bilateral). The WTO names all such economic engagements as RTA. With which countries has India signed these agreements? India has signed trade agreements with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, Korea, Japan, Australia, UAE, Mauritius, ASEAN and EFTA blocks. According to the Global Trade Research Initiative (GTRI), after securing deals with the major economies of Asia, India has shifted its FTA focus from East (ASEAN, Japan, Korea) to Western partners. India is now prioritizing FTA with EU and US to expand exports and strengthen trade relations with the big economies of the West. Read this news too… UK’s luxury cars-branded clothes will be cheaper in India: Both countries signed a free trade agreement, PM Modi said – this is a historic achievement UK’s luxury cars, branded clothes and footwear can become cheaper in India. Today, on Tuesday 6 May, India and UK have signed a Free Trade Agreement (FTA). The agreement was finalized after 14 rounds of talks. After this agreement, India’s tariff on imported whiskey and gin will be reduced from 150% to 75%. Later it will be reduced to 40% by the tenth year of the agreement. At the same time, the tariff on automotive will be reduced from 100% to 10%. Read full news…
