India-EU FTA to complete by December-end: Piyush Goyal
What's the story
Commerce and Industry Minister Piyush Goyal has expressed confidence in the ongoing negotiations for a Free Trade Agreement (FTA) between India and the European Union (EU). Speaking at an event organized by the Automobile Component Manufacturers Association of India, Goyal said both sides are working hard to finalize this "groundbreaking" deal by December-end. EU Trade Commissioner Maros Sefcovic echoed his sentiments, emphasizing their commitment to creating a balanced partnership that fosters innovation and strengthens supply chains.
Trade enhancement
Sefcovic emphasizes FTA's role in enhancing trade flows
Sefcovic stressed the potential of the FTA to enhance trade flows between India and the EU. He said, "I believe that our shared goal with Minister Goyal is to ensure that the FTA would facilitate two-way trade flows between India and EU under tariff liberalization for all components from engines to brakes." The 13th round of India-EU FTA talks was held in New Delhi from September 8-12.
Tech integration
Goyal envisions FTA as a catalyst for technological advancement
Goyal believes the FTA would facilitate the introduction of advanced new technologies into India. He said, "I believe that by combining the power of our automotive markets, the world's third and fourth largest, we can lead the charge in developing cutting-edge combustion engines as well as electric vehicles with advanced battery technologies and smart mobility solutions that meet the needs of the changing world."
Duty negotiations
EU pushing for import duty concessions in auto sector
The FTA talks are especially important as the EU is seeking import duty concessions in the auto sector from India. Despite charging over 100% import duty on fully-built vehicles, India gave concession to UK-built cars under a recent FTA. Several European automakers such as Volkswagen and Mercedes-Benz have manufacturing units in India, making these negotiations even more significant for both sides.
Investment focus
EU-India cooperation to extend beyond trade to high-value-added investments
Hansen, the European Commission's Agriculture Commissioner, stressed that the EU-India relationship is not just about trade but also high-value-added investment. These investments could create thousands of jobs. Sefcovic added their cooperation in the auto sector would involve sharing best practices in manufacturing, investing and research & development for next-generation vehicles.
Joint efforts
Sefcovic calls for joint action on climate change
Sefcovic also highlighted the need for India and the EU to work together on global challenges like climate change through cleaner technologies. He said, "We would work on standards, and of course, we would jointly address global challenges like climate change through cleaner and more efficient technologies." Goyal emphasized that despite uncertainties in global trade due to high tariffs imposed by the US on several countries, India will benefit from the EU's economy and innovations.