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Important issues remained to be resolved: EU envoy Delphin on negotiations for FTA with India
EU envoy Herve Delphin termed the proposed India-EU free trade pact a "game changer" for boosting bilateral trade and investment, especially as some countries raise tariffs. Despite leaders aiming for a December finalization, Delphin noted negotiations remain challenging, with important issues yet to be resolved ahead of the upcoming 14th round.
New Delhi: The proposed free trade pact and the investment protection agreement between India and the European Union can be a "game changer" at a time some countries are raising tariffs and closing their markets, EU envoy Herve Delphin has said.
At the same time, Delphin noted that the negotiations for the trade deal are "challenging" and important issues remained to be solved.
His comments came days before India and the 27-nation bloc hold the 14th round of negotiations in Brussels on the much awaited free trade agreement (FTA).
Last month, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to finalise the trade deal by December.
The European Union is India's biggest trade partner with bilateral trade in goods recording USD 135 billion in the financial year 2023-24.
"The FTA can open new opportunities for EU and Indian businesses and create conditions to significantly increase our bilateral trade and investment," Delphin said.
"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 said at Federation of European Business in India (FEBI) on Tuesday.
The remarks by ambassador of the European Union to India came amid trade disruptions caused by the Trump administration's policies on trade and tariff.
The text of the envoy's speech was released to the media on Saturday.
Delphin said the negotiating teams from India and the EU are working hard on the FTA
"(It is) fair to say the negotiations are challenging and important issues remain to be solved. The 13th round earlier in September with the direct involvement of Commissioners (Maros) Sefcovic and (Christophe) Hansen on the EU side did not result in the sort of breakthrough, which was expected," he said.
The 13th round of negotiations for the FTA took place in Delhi in presence of European Commission's Agriculture commissioner Hansen and trade chief Sefcovic.
"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," Delphin said.
The two sides have already concluded negotiations on 11 chapters that included customs and trade facilitation, dispute settlement, digital trade, sustainable food system, small and medium-sized enterprises, competition and subsidies and capital movements.
Negotiations on several key chapters including rules of origin and market access are yet to be concluded.
"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," he said.
Add as a Reliable and Trusted News Source Add Now! Delphin said that there is a huge potential for growth in two-way trade considering that the EU and India are the second and the fourth largest economies in the world.
Source: EconomicTimes
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