New Delhi: External Affairs Minister S. Jaishankar stressed how important it is for both India and the European Union (EU) to quickly finish the trade pact that is currently being negotiated on Wednesday. Jaishankar said that finishing the Free Trade Agreement (FTA) might make a “big difference” in stabilizing the international economy and strengthening democratic forces around the world.
The Minister said what he did after meeting with a crucial EU group that was in India. The trip is mainly to help move the complicated talks for the FTA forward, because the deal’s deadline is little over two months away.
Jaishankar wrote on social media, “We talked about how India and the European Union can make the most of their similarities and work together more closely.” This might help the global economy stay stable and make democratic forces stronger. He then stressed how important it was, saying, “The early conclusion of the India-EU FTA can make a big difference to these goals.”
Deadlines and the momentum of negotiations
Jaishankar’s words come at a very important time, especially as India is also in the middle of trade talks with the US, where tariffs are quite high, including a record-high 50% tariff imposed by the Trump administration.
The effort for a swift agreement is in line with the high-level promise made last month by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen to finish the trade deal by December. This aim was first set during Von der Leyen’s visit to India in February with the EU College of Commissioners.
The EU is India’s biggest trading partner right now, with goods worth $135 billion traded back and forth in 2023–24. If the FTA works, it should greatly increase the amount of trade between the two countries.
A lot of progress has been made
There has been a lot of activity at the top levels of the trade talks lately. On October 10, India and the EU finished the 14th round of FTA talks in Brussels. The main goal was to strengthen a “economically meaningful market access package.”
Both sides are said to have finished talks on about a dozen chapters, which cover things like:
Helping with customs and trade
Settling disputes
Trade of digital goods
Food system that lasts
Small and medium-sized businesses (SMEs)
Subsidies and competition
Moving money
Earlier this week, Commerce Minister Piyush Goyal went to Brussels to engage with high-ranking EU officials. After this, EU Ambassador Hervé Delphin said that “substantial progress” has been achieved. He also said on social media that the “EU and India are in continuous negotiation mode, aiming to reach an agreement by the end of the year.”
The visiting group of European Parliament members will meet with different groups in India to talk about the trade talks and see what the pros and cons are.