Piyush Goyal Meets EU Trade Chief to Revive Stalled India-EU FTA
In a high-stakes push to finalize the long-delayed India-EU Free Trade Agreement (FTA), Union Commerce Minister Piyush Goyal met EU Trade Commissioner Valdis Dombrovskis in Brussels. The talks aimed to break the decade-long deadlock on key issues blocking the Bilateral Trade and Investment Agreement (BTIA).
Why the India-EU FTA Matters
- $130B+ bilateral trade (2022-23) makes the EU India’s 2nd-largest trading partner.
- A deal could unlock new markets for Indian IT, pharma, and textiles while giving the EU access to India’s 500M+ consumer base.
4 Major Roadblocks in FTA Negotiations
1. Market Access & Tariffs
- EU Demands: Lower Indian duties on automobiles, wine, and dairy.
- India’s Asks: Easier visas for skilled professionals (Mode 4) and reduced EU tariffs on textiles and farm exports.
2. Data Localization & IPR Clashes
- The EU opposes India’s data storage rules (Draft Data Protection Bill), which could raise costs for European tech firms.
- Pharma friction: EU’s strict IPR laws conflict with India’s generic drug industry.
3. Green Trade Rules
- EU’s Carbon Tax (CBAM): May hurt Indian steel and aluminum exports.
- Deforestation norms: Could impact India’s agricultural shipments.
- Goyal’s stance: “Sustainability must align with developing nations’ growth needs.”
4. Investment & Legal Safeguards
- India seeks protection against investor lawsuits (ISDS clauses), fearing policy constraints.
Challenges Ahead for the Deal
- Farm protests: EU opposes India’s agricultural subsidies.
- Geopolitics: EU’s ties with UK/Russia may influence talks.
- SME fears: Indian small businesses worry about cheap EU imports.
What’s Next?
Technical teams will meet soon to draft compromise solutions. Goyal tweeted: “Working for a fair, balanced deal benefiting both sides.”
Bottom Line
If finalized, the India-EU FTA could rival mega-deals like RCEP—but tough compromises lie ahead.
