India and the European Union (EU) have accelerated the negotiations on a Free Trade Agreement (FTA). The fourth round of talks in Brussels last month saw initial discussions on providing access to goods, services, investment and public procurement.
The two sides have developed a “deeper understanding” on the trade chapter but there are differences. According to the report released on the fourth round of talks of the European Union, India and the EU had agreed to continue the dialogue to resolve the differences.
Several provisions were achieved under the ‘good progress’ of digital business. Discussions were held under the chapter on public procurement and India made additional proposals on the draft to the EU. Both the sides had ‘fruitful discussions’ on all the elements and a consensus would be reached on these. It is based on the principle of non-discrimination. It is said that very few provisions are to be discussed while the language of most has been decided.
The fifth round of talks will be held in New Delhi from June 19 to 23, 2023. Professor Arpita Mukherjee of the Indian Council for Research on International Economic Relations said, “There has been considerable progress on several chapters in the fourth phase of the free trade agreement between the European Union and India. Significant progress has been made on areas such as digital trade, SMEs and sustainable food systems. There is potential for mutually beneficial cooperation in these chapters. Intersessional talks took place in some chapters like goods, services and SPS interlocutors.
India and the European Union formally started negotiations for a free trade agreement last year. This conversation was stuck for the last nine years. However, both sides aim to conclude the talks by early 2024. The second largest export destination for India is the European Union.
