India-EU leaders note slow progress in free trade agreement talks | Economic and political news

EU ambassador to India Harvey Delfin, who was present at the launch, noted that progress on the free trade agreement was “marginal” as the two sides were yet to overcome their “fundamental differences”.

According to Delfin, to finalize a trade deal, both sides need to recalibrate, but also make sure the trade deal makes sense.

“Both sides will have to consider possible packages of mutual concessions, which will result in both sides entering areas of trade policy they have never ventured into before. The EU will be ready to do its part, but it will also require India to cover much of the distance that currently separates us. The time has come for such a political call,” he said.

In June 2022, India and the EU began formal negotiations on a free trade agreement, which had been at an impasse for almost nine years. Nine rounds of talks have been held so far, with the next round expected to take place early next year.

Delphine and Goyal called for the need to address regulatory constraints and obstacles faced by companies doing business in India and the EU respectively.

Delphine mentioned the need to address issues such as quality control mandates, stringent import permits, investment protection and legal uncertainty regarding taxation faced by European businesses in India.

Goyal raised “unfair” trade practices in the form of “unjustified” duties such as the Carbon Border Adjustment Mechanism (CBAM) and deforestation-related duties.

Goyal also said that for over half a decade, India has been negotiating tariffs contrary to the Most Favored Nation (MFN) clause of the World Trade Organization (WTO) as the EU brings new elements to the India-EU relationship. commercial relations.

“We have the same standards problem because the EU has set unjustified standards that constitute a trade barrier hindering the development of trade between India and the EU. People come to us and tell us about significant unfair trade practices on the European side… I request India not to engage in unfair trade practices, why should we pay additional duty and after six years we may have to take other measures,” Goyal said.

“Today the world cannot act on the principle of revenge. It has to work on the principle of mutual cooperation and find solutions,” Goyal added.