India-EU Trade Talks: Navigating Regulatory Hurdles for a Balanced Future

India and the EU are progressing in discussions to finalize a free trade agreement, addressing challenging issues like steel, auto regulations, and carbon taxes. During Commerce Minister Piyush Goyal's visit to Brussels, both parties emphasized the need for balanced tariffs and predictable regulations to enhance bilateral trade relations.

India and the European Union are intensifying efforts to finalize a comprehensive free trade agreement, targeting sectors such as steel, automobiles, and carbon taxation. The Commerce Ministry reported continued discussions during Commerce and Industry Minister Piyush Goyal's recent visit to Brussels, highlighting the sensitive nature of these topics within the proposed deal.

Minister Goyal engaged with EU Commissioner for Trade and Economic Security Maros Sefcovic, seeking redress for tariff and non-tariff barriers, alongside establishing predictable regulatory frameworks. Emphasizing the labour-intensive sectors, India hopes for preferential treatment in the ongoing negotiations, aiming for completion by the end of 2025.

The European Union has enacted regulations impacting Indian exports, such as the Carbon Border Adjustment Mechanism, potentially imposing tariffs on steel, aluminium, and cement exports. Both sides have reaffirmed their commitment to resolving these challenges, with an EU technical team planning a visit to India for further constructive dialogue.

(With inputs from agencies.)