This week, India and the European Union will be engaged in important trade negotiations in New Delhi. The aim is to close gaps on agriculture, dairy and non-tariff obstacles.
According to Reuters, both sides have set a deadline of the end of this year for a complete deal.
India wants to increase its global partnerships after US President Donald Trump raised tariffs on Indian goods to 50% in the last month.
The move was a reaction to India buying oil from Russia. It has had a negative impact on Indian exports including textiles and leather.
Negotiations that started in 2022, and were relaunched after Trump’s election, have intensified.
Partnerships
Brussels has expedited the pursuit of its trade partners in response to Trump’s tariffs. It finalised agreements with Mexico, the South American Mercosur countries, and advanced discussions with India and Indonesia.
Deals with the EU can also help strengthen India’s relationship with the West.
It follows concerns about Prime Minister Narendra Modi’s recent visit to China, where he attended a summit with Russian President Vladimir Putin.
Reuters reported that 11 out of 23 currently under discussion chapters have already been completed.
According to the report, these finalised chapters include customs, digital commerce, intellectual property and competition as well as dispute resolution, subsidy, anti-fraud, and other measures.
India continues to face obstacles, mainly because it is reluctant to give up on its agricultural and dairy policies due to concern for the livelihoods of farmers.
The EU, on the other hand, advocates for greater access to Indian markets for automobiles and alcohol beverages.
In a report, an EU official highlighted ongoing differences concerning food safety standards and labour and environmental obligations as well as what Brussels perceived to be Indian quality control orders which restrict trade via non-tariff measures.
Russian Oil Purchases
Brussels also presses New Delhi to reduce its purchase of Russian oil at discounted prices, saying that this would weaken the sanctions against Moscow.
According to EU officials, although this topic is not anticipated to dominate negotiations, it could cause a distraction and even lead to opposition from the European Parliament which has to ratify all agreements.
Later this week, EU officials including European Agriculture Commissar Christophe Hansen, and EU Trade Chief Maros Sfcovic are expected to travel to Delhi for discussions with Indian counterparts.
The EU Political and Security Committee is also scheduled to travel to India between September 10-14. It will be chaired and composed by all 27 ambassadors.
The itinerary of the delegation includes meeting with officials from government, representatives from defence industries, and think-tanks.
Another point of contention is the EU’s border carbon tax that will begin in 2026.
The tax is imposed on imports that are high in carbon, such as steel and aluminum.
Brussels defends their climate policy while Indian officials call it a secret trade barrier.
EU officials have expressed a willingness to make changes to their plans to accommodate the needs of smaller and mid-sized companies.
The post India wants stronger partnership with EU amid US Trade tensions could be updated as new developments unfold.
This site is for entertainment only. Click here to read more
