India-EU FTA Talks Face Challenges as Key Issues Remain Unresolved

Despite nine rigorous negotiation rounds spanning two and a half years, discussions on the proposed free trade agreement (FTA) between India and the European Union (EU) have slowed due to fundamental disagreements. The negotiations are now awaiting political-level assessment, with recent statements from top officials on both sides reflecting their respective positions and intentions.

According to a report by the Delhi-based think tank Global Trade Research Initiative (GTRI), one of the primary reasons for the delay is the differing ambitions of both parties. “The EU seeks tariff elimination on over 95 per cent of its exports, including sensitive agricultural products and automobiles, while India is comfortable opening up only around 90 per cent of its market and is hesitant to lower tariffs on bulk agricultural products,” GTRI said. 

Besides, differing views on new issues such as sustainability, labour standards, intellectual property rights (IPR), and data protection have added complexities to the talks. At the time, the deadlock was primarily due to unresolved differences on key issues. India sought a more flexible visa regime for skilled professionals and showed reluctance to negotiate government procurement matters. Meanwhile, the EU strongly advocated for stricter IPR regulations, greater market access, and significant reductions in import duties on automobiles and alcoholic beverages, particularly wine.