India and the European Union (EU) entered their first round of trade deal negotiations after the EU College of Commissioners visited India last month. Both countries have made considerable progress in agreeing upon norms that will guide dispute settlements. However, the talks failed to make a significant breakthrough on the rules of origin of a product.
Prime Minister Narendra Modi and Ursula von der Leyer, President of the European Commission, have announced that both sides will aim to conclude the free trade agreement by the end of 2025. These negotiations have been underway since July 2020 and have held around ten rounds of talk by now. The next round is set to start on May 5 in New Delhi.
A report released by the European Union on the progress of FTA talks stated that negotiations have made good progress, particularly on mediation. “The main section of the dispute settlement is now substantially agreed upon. Intense discussions took place on rules of origin, but did not lead to a major breakthrough.”
Progress Till Now
“A particular focus was given to chapters related to market access. For the first time, sectorial sessions took place, examining specific industries such as automotive and medical devices from a holistic perspective, addressing all obstacles, impeding market access, including trades, rules of origin and technical barriers to trade (TBT),” the report further added.
The talks between India and the EU can give the world one of the largest deals of its own kind. Without naming China, the two parties are likely to help each other in achieving the common goal of risking their economy and sensitive sectors, such as batteries, pharmaceutical semiconductors, clean hydrogen and defence.
