NEW DELHI: The speedy conclusion of a trade deal between India and the European Union (EU) can make a “big difference” to efforts to stabilise the global economy and strengthen democratic forces, external affairs minister S Jaishankar said on Wednesday.
External affairs minister S Jaishankar during a meeting with delegation of European Parliament’s Committee on International Trade, in New Delhi. (@DrSJaishankar/via PTI)
Jaishankar made the remarks after meeting a key panel of the EU visiting India for talks aimed at pushing the conclusion of a free trade agreement (FTA), with a little more than two months to go for the deadline set by the leadership of both sides to conclude the deal.
“Discussed how India & the European Union can maximize convergences and deepen cooperation. This can stabilize the global economy and strengthen democratic forces,” Jaishankar said in a social media post.
“The early conclusion of the India-EU FTA can make a big difference to these objectives,” he said.
Jaishankar’s remarks came at a time when there has been little forward movement in India-US trade talks amid unprecedented 50% tariffs imposed by the Trump administration.
Last month, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to finalise the trade deal by December. The target was set when Von der Leyen visited India in February with the EU College of Commissioners.
The EU is India’s biggest trade partner with two-way trade in goods worth $135 billion in 2023-24. The FTA is expected to enhance bilateral trade significantly.
India and the EU concluded the 14th round of FTA negotiations in Brussels on October 10. Following the negotiations, the EU said the talks focused on firming up an economically meaningful market access package.
The two sides have already concluded negotiations on about a dozen chapters, including customs and trade facilitation, dispute settlement, digital trade, sustainable food systems, small and medium-sized enterprises, competition, subsidies, and capital movements.
The delegation of members of the European Parliament will also engage with a variety of stakeholders to assess the opportunities and challenges posed by the trade negotiations.
Commerce minister Piyush Goyal visited Brussels earlier this week to meet with top EU officials to discuss the trade pact. EU ambassador Hervé Delphin referred to Goyal’s visit and said “substantial progress” has been made in the negotiations.
“EU & India in continuous negotiation mode, aiming to reach an agreement by end of year,” Delphin said on social media.