India and the European Union (EU) have placed equal importance on addressing both tariff and non-tariff barriers during their ongoing trade negotiations, with the goal of establishing a fair and mutually beneficial deal. Commerce Minister Piyush Goyal emphasized the importance of resolving these issues while considering the sensitivity of certain sectors for both nations. The aim is to reach a free trade agreement (FTA) by the end of 2025, which will be a transformative step in strengthening India-EU relations.
During his meeting in Brussels with European Commission Trade and Economic Security Commissioner Maros Sefcovic, Piyush Goyal reaffirmed the commitment to conclude the FTA negotiations by 2025. Piyush Goyal highlighted that both sides are working towards making market access more meaningful while respecting the unique economic conditions of each country. “The agreement, once concluded, will undoubtedly become a transformative pillar of our deep partnership, enhancing market access, aligning regulatory practices, and boosting competitiveness,” he said.
The talks have also centered on the vital role of investment and mobility in driving economic growth between India and the EU. Piyush Goyal mentioned that both nations have agreed on a framework that would foster mutual economic development. “We are committed to resolving pending issues in a spirit of mutual respect and pragmatism,” he added, emphasizing the collaborative approach between the two sides.
A significant point of contention in the talks is the EU’s carbon border adjustment mechanism (CBAM), which is set to be implemented by 2026. This mechanism aims to impose tariffs on high-carbon goods such as steel, cement, and aluminum to help achieve net-zero emissions by 2050. Piyush Goyal has repeatedly raised concerns about the potential impact of this carbon tax on Indian exports, as well as the EU’s deforestation regulations, which could increase costs for Indian products.
Despite these challenges, both Piyush Goyal and Sefcovic expressed optimism about the ongoing discussions. Sefcovic noted that the negotiations are progressing well, and both sides are working towards a balanced and beneficial deal. The next round of talks is scheduled for mid-May in New Delhi, with both countries aiming to finalize the FTA by the end of 2025. The talks, which were first launched in 2007 but stalled in 2013, resumed in 2022, and have gained momentum in recent months.
