India and the EU are set to formally restart negotiations for a free trade agreement (FTA) soon, EU trade commissioner Valdis Dombrovskis said.
India-EU FTA negotiations had been on the back burner after they were started in May 2013. However, an anti-China sentiment and the need for de-risking the supply chain amid geopolitical uncertainties have reignited several stalled trade talks this year.
Observers said the India-EU FTA could take much longer than those that India has already signed or is negotiating.
“Will formally launch EU-India Free Trade Agreement negotiations very soon. Also discussing prospects for the upcoming WTO’s 12th ministerial conference (MC12),” Dombrovskis said in a social media post.
Commerce and industry minister Piyush Goyal had said that India will conclude a FTA with the 27-nation group by next year.
Mint had earlier reported that the lead negotiators for India and EU met in Brussels in March to prepare the ground before the negotiations begin and to explore the possibility of an early-harvest agreement.
The EU is expected to seek duty concessions for automobiles, dairy products, and wines and spirits, while India wants greater market access in financial services and mobility for professionals. Besides, the EU could also seek concessions that India has extended to other FTA partner nations.
Under the FTA, India wants the EU to conclude agreements on investment protection and geographical indicators accounting for nearly 15% of Indian exports, which jumped 59% year-on-year in April-January to $50.7 billion.
The bloc accounts for 8.5% of India’s imports and posted 33.3% growth during the period to $42.18 billion.
A major theme in the India-EU deal could revolve around sustainability. Robert Troy, Ireland’s minister of state for trade promotion said that sustainability from a climate perspective will underpin any negotiation from a European perspective.
The EU is one of the largest markets for textiles and as such assumes special importance for Indian producers.
Source:livemint.com