India and the European Union are set to seal their ambitious free trade pact, with two critical rounds of talks in the next month to hammer out differences on rules of origin, market access, and tariffs on wine and dairy products, informed sources said on Sunday.
This week, European Commission officials — Agriculture Commissioner Christophe Hansen and Trade Chief Maros Sefcovic — are in India to hold talks with Indian officials, as both sides are keen to wrap up the FTA by this year-end.
The EU is India's biggest trading partner, with bilateral merchandise trade crossing $135 billion during the 2023-24 fiscal year.
Aside from the trade agreement, India and the EU are trying to finalize a series of transformative initiatives, such as a new politico-strategic vision and basic frameworks to deepen defence cooperation — moves that come with increasing geopolitical uncertainties.
Significantly, the EU will unveil its new strategic vision for ties with India on September 17, prescribing a future-oriented approach to engagement with New Delhi.
These proposals are set to be officially discussed during the India-EU annual summit, provisionally scheduled to be held in India in the first quarter of next year.
In the next three months, there are a series of top-level meetings and discussions to be held, including a visit by the EU's Political and Security Committee, which consists of envoys from all 27 member states.
India-EU counter-terror dialogue is due later this month in Brussels, after which the European Parliament's Standing Committee on trade will visit New Delhi in October. Later, the Indo-Pacific forum of ministers would take place on November 20-21.
The second meeting of the EU-India Trade and Technology Council (TTC) is also expected in November, as well as the foreign policy and security dialogue in Delhi. EU High Representative for Foreign Affairs and Security Policy Kaja Kallas will reportedly come to India in either December or January.
The 13th round of FTA talks will be held in New Delhi this week, while the next round will be scheduled in early next month in Brussels.
Talks on 11 chapters are already finalized, ranging from customs and trade facilitation, settlement of disputes, electronic trade, sustainable food systems, SMEs, competition and subsidies, and capital flows.
But talks on major chapters such as rules of origin and market access are still in progress, sources added. Non-tariff measures are also in the agenda, but both sides are hopeful of ironing out all issues of contention by achieving the "right equilibrium."
During a recent telephonic conversation, Prime Minister Narendra Modi and EU leaders Antonio Costa and Ursula von der Leyen reiterated their intention to conclude the trade pact at an early date, highlighting the significance of India-EU collaboration in shaping global stability and a rules-based international system.
The new strategic road map for India-EU relations will be subject to scrutiny by member states prior to ratification and is likely to be the guiding document for the next phase of their partnership, with adoption being timed at the summit.
To tighten defence cooperation, both nations are negotiating a security of information agreement and two other frameworks, looking to enhance collaboration in joint development of military hardware and equipment, official sources say.
The next TTC meeting is especially significant. Formed in 2022, the TTC allows for the transfer of key technologies in fields ranging from artificial intelligence and quantum computing to semiconductors and cybersecurity. The agreement with India is the EU's second technology partnership, its first being with the United States in June of 2021.
