New Delhi: India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed free trade agreement (FTA) here and agreed to reach a deal in two phases, according to an official.
“The 11th round of talks concluded on May 16,” the official said.
The two sides have agreed to agree in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.
The talks focused on areas like market access offers in goods, services, and investment.
India has followed the practice of negotiating trade pacts in two phases with Australia. It is following a similar approach to the US.
Commerce Secretary Sunil Barthwal last month stated, “If some of the issues which may not be very core to the trade, maybe taking some more time, then it is better to focus on core trade issues. So, we say that first things first…We are also discussing with the EU what can be the early harvest of the first tranche, where we can do faster”.
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.
