India, EU Trade Pact Talks Advance

New Delhi, Dec 8 (PTI) Commerce and Industry Minister Piyush Goyal and EU Trade Commissioner Maros Sefcovic on Monday held discussions on the issues related to the proposed trade pact, an official said.

Maros is leading a delegation of EU officials here for the trade talks.

These meetings are important as both sides are eager to conclude the negotiations as early as possible.

In a social media post, Sefcovic said: "In India for a two-day marathon of meetings with @PiyushGoyal to advance our trade and investment negotiations".

The EU team includes Directorate-General for Trade Sabine Weyand, EU Ambassador to India Herve Delphin, EU Chief Negotiator Christophe Kiener, and Petros Sourmelis, Head of Trade Section, EU Delegation to India.

Differences that still need to be ironed out in certain areas, such as steel, carbon tax, automobiles and non-tariff barriers.

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive FTA (free trade agreement), an investment protection agreement and a pact on geographical indications after a gap of over eight years.

It was stalled in 2013 due to differences on the level of opening up markets.

India's bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in other products like wine, spirits, meat, poultry, and a strong intellectual property regime.

Indian goods' exports to the EU, such as readymade garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, rules of origin, customs and trade facilitation, government procurement, dispute settlement, intellectual property rights, and geographical indications.