India and EU Accelerate Toward Crucial Trade Pact

India is expediting negotiations for a comprehensive free trade agreement with the European Union, marked by Commerce and Industry Minister Piyush Goyal's three pivotal meetings with EU Trade Commissioner Maros Sefcovic within a mere 35 days. During a two-day visit to Italy, Goyal described the unprecedented pace of talks as a testament to both parties' commitment to sealing the long-anticipated trade agreement.

'We scheduled three meetings in 35 days, underscoring our mutual commitment to the FTA... we aim to expedite the process,' Goyal stated on Thursday, emphasizing India's resolve to accelerate negotiations. This flurry of diplomatic activity included meetings in Brussels on May 1 and May 23, followed by a third meeting concluding on June 2 in Paris, illustrating the urgency both sides attach to finalizing the agreement.

India is bringing substantial momentum to these discussions, having recently concluded similar agreements with the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland, as well as the United Kingdom. The ongoing EU negotiations are a continuation of talks that had been stalled for more than eight years. India and the 27-member European Union bloc resumed comprehensive FTA discussions in June 2022, alongside negotiations for an investment protection agreement and a geographical indications pact.

This political commitment reached its zenith in February when Prime Minister Narendra Modi and European Commission President Ursula von der Leyen agreed to finalize the trade deal by the year's end, setting an ambitious timeline for its conclusion. 'We are making rapid progress on this dynamic FTA, which would open up business opportunities for both sides,' Goyal remarked, describing the potential agreement as 'very strong and mutually beneficial.'

Yet, the minister noted that current bilateral trade between India and Italy is 'low and sub-optimal' at approximately $15 billion in goods, despite the vast untapped potential of both economies. Italian Deputy Prime Minister and Foreign Minister Antonio Tajani echoed calls for enhanced economic cooperation, describing India and Italy as 'natural partners.' He emphasized Italy's goal to boost exports to India while actively seeking Indian investments in Italian markets.

'Our aim is to reduce trade barriers,' Tajani declared, addressing broader concerns about global trade tensions. Regarding US tariffs on steel and aluminium, he stated, 'Duties are never positive,' and reiterated the importance of reducing trade barriers. The accelerated pace of India-EU negotiations comes at a crucial time for global trade relationships, with both parties seeking to diversify economic partnerships and reduce reliance on other major trading blocs. Success in these talks could set a precedent for India's engagement with other European partners and significantly reshape trade flows between Asia and Europe.

(With inputs from agencies.)