India has said that the non-tariff barriers are impeding trade with the European Union and has called for addressing the long-pending issues as a confidence building measure.
The issue of the barriers Indian exports face in the EU was raised by Commerce and Industry Minister Piyush Goyal in his meeting with European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency Maroš Šefčovič.
This was the first meeting between the two leaders after the new European Commission of the European Union took charge. Other items on the agenda were discussions on India-EU Free Trade Agreement (FTA) negotiations, High Level Dialogue, India-EU Trade and Technology Council, other high level engagements and trade and investment issues, a statement by the ministry of commerce and industry said.
Goyal said after nine rounds of intensive negotiations, FTA discussions require strategic political guidance to conclude a commercially significant and mutually beneficial agreement, with due consideration given to each side’s sensitivities.
“Both sides agreed to explore a balanced, equitable, ambitious and mutually beneficial FTA. The two leaders also committed to schedule a bilateral visit to understand each other’s sensitivities and concerns at a date convenient to both sides, through diplomatic channels, the statement added.
The negotiations on the FTA that resumed after a gap of nine years in June 2022 has seen nine round of negotiations and the breakthrough is still elusive,
One of the most prominent non-tariff barriers that India faces in the European Union is the safeguard duties on steel, which were first imposed in 2018 and then extended this year till 2026. EU is the most export market for Indian steel with shipments of Rs 29534 crore in 2024-24. Despite the safeguard duties Indian steel exports to the EU have been increasing every year. Steel exports to the EU stood at Rs 22482 crore in 2022-23.
Apart from normal safeguard action the EU has also come out with Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulation that will impose taxes on imports based on carbon emission intensity.
India’s bilateral trade in goods with the EU was $ 137.41 billion in 2023-24, making it the largest trading partner of India for goods. The bilateral trade in services, in 2023, between India and the EU was estimated at $ 51.45 billion.
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