At an event held at the European Union (EU) headquarters in Brussels yesterday, the Minister of Trade and Industry, Consumer Affairs and Food & Distribution and Fabric, Shri PiyushGoyal, and Mr. Valdis Dombrovskis, Deputy Prime Minister. The European Commission has officially resumed negotiations on the India-EU Free Trade Agreement (FTA). In addition, negotiations for the Private Investment Protection Agreement (IPA) and the Geographical Agreement (GIs) were also introduced. The Delhi visit by European Commission President Ursula von der Leyen in April 2022, and the recent visit of Prime Minister Shri Narendra Modi to Europe accelerated the FTA negotiations and helped to define a clear road to negotiations.
Last year, at the India-EU Leaders Summit held in Porto on 8 May 2021, an agreement was reached to resume negotiations for an equitable, ambitious, comprehensive and mutually beneficial FTA negotiations as well as for new negotiations on the IPA and and a separate agreement regarding GIs. . Both partners are now resuming FTA negotiations after a gap of about nine years since previous negotiations were abandoned in 2013 due to differences in scope and expectations in the agreement.This could be one of the most important FTAs ​​in India as the EU is the second largest trading partner behind the US. India-EU commodity trading has registered a record high of USD 116.36 Billion in 2021-22 with annual growth of 43.5%. India’s exports to the EU have increased by 57 percent in FY 2021-22 to $ 65 billion. India has more trade with the EU.
Considering that both partners have the same basic values ​​and interests and are the two largest open market economies, the trade agreement will help to diversify and protect supply chains, increase economic opportunities for our businesses, and bring significant benefits to people. Both sides aim to make trade negotiations more comprehensive, balanced and comprehensive, based on the principles of impartiality and reconciliation. There will also be discussions to resolve Market Access Issues that hinder bilateral trade. India earlier this year hosted the FTAs ​​with Australia and the UAE at the time of the recording. FTA negotiations with Canada and the UK are also ongoing. The FTA negotiations are part of India’s comprehensive strategy to create equitable trade agreements with key economies and to renew existing trade agreements to improve trade and investment.
While the proposed IPA will provide a legal framework for cross-border investment to improve investor confidence, the GI agreement is expected to establish a transparent and predictable regulatory environment, to facilitate trade in GI products including handicrafts and agricultural products. Both sides aim to negotiate all three agreements equally and conclude them simultaneously. The first round of negotiations for all three agreements will be held from 27 June to 1 July 2022 in New Delhi.
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