European Union ambassador to India, Herve Delphin, has described the negotiations for a proposed free trade agreement (FTA) and investment protection pact between India and the EU as “challenging,” saying “important issues remain to be solved”.
Delphin said the agreements could be a “game changer” at a time when some countries are raising tariffs and closing their markets. “The FTA can open new opportunities for EU and Indian businesses and create conditions to significantly increase our bilateral trade and investment,” he said at an event organised by the Federation of European Business in India (FEBI).
“While some countries are raising tariffs or otherwise closing their markets, we should use the FTA to diversify trade, hedge against uncertainties and strengthen our supply chains,” he added.
His remarks came just days before India and the 27-nation bloc hold the 14th round of negotiations in Brussels on the long-awaited trade pact. Last month, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to finalise the deal by December.
Delphin acknowledged the 13th round of negotiations in September, held in New Delhi with the direct involvement of European Commissioners Maros Sefcovic and Christophe Hansen, “did not result in the sort of breakthrough which was expected.”
“The EU was and is still ready to conclude on a meaningful package. We look forward to the next round and further negotiations towards a mutually beneficial deal,” he said.
The EU is India’s biggest trade partner, with bilateral trade in goods reaching USD 135 billion in the financial year 2023-24. The two sides have already concluded negotiations on 11 chapters including customs and trade facilitation, dispute settlement, digital trade, sustainable food systems, small and medium-sized enterprises, competition and subsidies, and capital movements. Negotiations on key chapters such as rules of origin and market access are still pending.
“The cases for the FTA and for an Investment Protection agreement are stronger than ever. Our economies are complementary and offer each other scale,” Delphin said. “The FTA and investment agreements can be the game changer but there is more in the EU-India economic relations.”
(With inputs from PTI)
