Piyush Goyal to visit Brussels for India-EU trade pact talks
What's the story
Commerce and Industry Minister Piyush Goyal will be in Brussels on January 8-9, 2025. The visit is part of the ongoing negotiations for a proposed trade pact between India and the European Union (EU). The talks are in their final phase, with both sides working hard to bridge differences and finalize a comprehensive agreement soon.
Diplomatic engagements
Goyal's meetings during Brussels visit
During his two-day stay, Goyal will meet Maros Sefcovic, the Executive Vice-President and European Commissioner for Trade of the EU. The visit comes at a crucial stage in the ongoing India-EU Free Trade Agreement (FTA) negotiations. Commerce Secretary Rajesh Agrawal said on December 15 that these talks have entered their "most difficult" phase with both sides working hard to resolve differences and conclude discussions soon.
Trade challenges
EU's carbon border adjustment mechanism in focus
The EU's carbon border adjustment mechanism (CBAM) is a key issue in the ongoing negotiations. CBAM could impose tariffs of 20-35% on Indian exports of steel, aluminum, and cement to the EU from January next year. The 16th round of talks between India and the EU was held earlier this month, covering key chapters such as goods, services, investment, rules of origin, and technical barriers to trade.
Trade dynamics
India's bilateral trade with EU and future prospects
India's bilateral trade in goods with the EU stood at $136.53 billion in 2024-25, making it the largest trading partner for goods. The EU market accounts for about 17% of India's total exports while its exports to India constitute 9% of its total overseas shipments. If finalized, the trade pact could make Indian exports to the EU such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery more competitive.