Next formal round of India-EU FTA talks not set, remaining issues need continuous discussion: Commerce Secretary

Negotiations on the free trade agreement (FTA) between India and the European Union are facing issues relating to market access, regulatory cooperation and agricultural sensitivities, The Hindu has learnt.

Separately, Commerce Secretary Rajesh Agrawal said that the next formal round of negotiations has not been announced as the nature of these issues are such that they require constant discussion rather than waiting for a formal round.

The 14th and latest round of negotiations was held on October 6-10 in Brussels. Minister of Commerce and Industry Piyush Goyal, and his counterparts in Europe, have regularly reiterated their commitment to completing negotiations on the trade deal by the end of this calendar year.

“India-EU FTA negotiations are progressing very well,” Mr. Agrawal said at a press conference. “We are in the last leg of negotiations. The last was the most arduous leg of negotiations because the toughest things are decided at the end. We are in that stage of negotiations. The last round saw real progress.”

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Continuous negotiation

He added that the teams from both sides would continue interacting with each other to work out their differences.

“Right now, we have not settled on the next round of official negotiations because we feel there are issues across areas that we need to resolve on a continuous basis,” Mr. Agrawal said. “So, instead of waiting for a round, there are engagements that are going on between the two sides virtually.”

He added that there could be a visit to New Delhi by the European team some time in November to carry forward these discussions, but that this would not be a formal round of negotiations.

Persistent issues

According to sources in the Commerce Ministry, the sticking points in the negotiations have to do with “market access, regulatory cooperation, and agricultural sensitivities”.

One of the key areas for which market access is being hotly negotiated is to do with European automobiles in India. The agricultural sensitivities are a long-standing issue, with India looking to protect its farmers against international competition.

The key area where greater regulator cooperation is needed is in the rules of origin, which are the criteria countries use to determine the ‘nationality’ of a product.

“Some officials of the Indian team have stayed back in Brussels to carry forward the negotiations regarding rules of origin,” the source said. “That is one area where a lot of work needs to be done.”