Indian officials to visit Brussels for EU trade talks this week

New Delhi: An Indian official team from the commerce ministry is expected to visit Brussels this week for the next round of negotiations on the proposed free trade agreement with the European Union (EU), source said on Tuesday.

The visit comes in the backdrop of recently concluded eleven round of talks between the chief negotiators of both the sides on May 16 here in the national capital.

Sources said that the official team is likely to leave on Wednesday for Brussels, the headquarter of the EU.

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.

India has followed the practice of negotiating trade pacts in two phases with Australia. It is following a similar approach to the US.

Duty cuts in automobiles and medical devices

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.

In June 2022, India and the 27-nation EU bloc resumed negotiations after a gap of over eight years. It stalled in 2013 due to differences over the level of opening up of the markets.

On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.

India's bilateral trade in goods with the EU was USD 137.41 billion in 2023-24 (exports worth USD 75.92 billion and imports worth USD 61.48 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, while EU's exports to India make up 9 per cent of its total overseas shipments.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion.

The two sides are negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications (GIs).