Two phases will make up the India-EU free trade agreement; Another round of FTA negotiations is over

India and the European Union have agreed to implement a free trade agreement in two phases. Both parties have concluded a further round of FTA talks, and it was decided in this context that the agreement needs to be implemented in two phases. The 11th round was concluded on May 16, said an official. Both parties agreed to implement it in two phases in light of the uncertain international trade scenario, especially US President Donald Trump's tariff proposal.

The 11th round centered around market access, largely in terms of goods, services, and investments. India began the process of tariff cuts in two phases in its agreement with Australia and is now carrying out the same in its discussions with the US.

Commerce Secretary Sunil Barthwal had said last month, "If some issues which are not very important for trade and are taking more time to decide, then it is better that we focus on the central issues of trade. So we say, first things first. With the EU also we are also considering what things we can decide in the first round, things on which we can decide quickly."

In the FTA with India, along with tax cuts on the auto sector and medical equipment, the EU also wants to reduce taxes on products like wine, spirits, meat, poultry, etc., and along with this wants strict enforcement of intellectual property rules. India exports readymade clothes, medicines, steel, petroleum products, and electrical machines to the EU, and if the agreement is successfully implemented by both sides, then these products will become more competitive there.

Earlier, Commerce and Industry Minister Piyush Goyal had discussed the progress of the agreement with EU Commissioner for Trade and Economic Security Maros Sefcovic in Brussels. After which, he said that the negotiations on the proposed Free Trade Agreement (FTA) between India and the European Union (EU) are moving in the right direction. Both sides are making solid progress toward a balanced and mutually beneficial agreement. At the same time, Sefcovic had said that the EU deeply values ​​​​its partnership with India. The EU is committed to taking it to a new level through a commercially meaningful agreement that opens markets for goods and services.

Sefcovic had said that in this era of global uncertainty, businesses in both regions want opportunity, access, and certainty. We are working together to ensure this. Goyal had said that the teams of India and this group of 27 countries negotiated the agreement. We have reiterated our shared commitment to complete the negotiations by the end of 2025.