India and Belgium have expressed confidence and ‘’renewed determination’’ for early conclusion of a ‘’modern, comprehensive and mutually beneficial’’ India-EU Free Trade Agreement (FTA) and reaffirmed the strong political resolve to address pending issues through constructive engagement.
They also emphasised the strategic importance of concluding a fair, balanced, and ambitious FTA that aligns with their shared values, economic priorities, and commitment to a rules-based trading framework.
Commerce Minister Piyush Goyal, who concluded a two-day visit to Brussels on January 9, held a series of discussions with Commissioner for Trade and Economic Security, Maroš Šefčovič. They provided guidance to negotiating teams to resolve pending issues and expedite the agreement, an official spokesman said here on Saturday. The discussions marked a ‘’decisive step forward in the India-EU Free Trade Agreement (FTA) negotiations,’’ the spokesman said.
The visit capped a week of intensive diplomatic and technical engagements in Brussels, underscoring the political resolve of both sides to deliver a comprehensive deal.
The Ministerial engagement was preceded by high-level discussions between Commerce Secretary Rajesh Agrawal and the Director-General for Trade, European Commission, Ms Sabine Weyand, on January 6-7.
The meetings focused on stocktaking the progress achieved across various negotiating tracks. The officials worked to “narrow divergences” and ensure clarity on outstanding issues, clearing the path for the Ministerial dialogue, the spokesman added.
Goyal and Commissioner Šefčovič conducted detailed deliberations on key areas of the proposed agreement. Both sides took note of the steady progress achieved across various negotiating tracks, including Market Access for Goods, Rules of Origin, Services, etc.
The Ministerial-level discussions reaffirmed the strong political resolve on either side to address pending issues through constructive engagement.
Sources said the deliberations covered critical, pending issues, including market access for sensitive industrial goods (e.g., automobiles, textiles, medical devices), as well as climate-linked trade measures such as the EU’s Carbon Border Adjustment Mechanism (CBAM). Strong emphasis was placed on creating a modern economic partnership that safeguards the interests of farmers and Micro, Small, and Medium Enterprises (MSMEs) in both regions.
The FTA, which is in a decisive phase of negotiations, is likely to be concluded around the India-EU Summit to be held here on January 27. While both sides had initially aimed to conclude the negotiations by the end of 2025, talks were extended as key differences remained on critical issues.
The main hurdles include market access for sensitive sectors, regulatory standards, and climate-linked trade measures like the EU’s Carbon Border Adjustment Mechanism (CBAM). India is pushing for zero-duty access for its labour-intensive sectors, such as textiles, leather, and handicrafts, and wants safeguards for MSMEs and farmers.
The EU is seeking significant duty reductions in automobiles, medical devices, wine, spirits, and a robust intellectual property rights regime.
The negotiations, which originally began in 2007 and were relaunched in 2022 after a nine-year hiatus, are now in their final and most difficult phase.
