New Delhi: Indian and European Union (EU) negotiations for a free trade agreement (FTA) are advancing positively, said Piyush Goyal, minister of commerce and industry in New Delhi.
After the first India-EU Trade & Technology Council (TTC) meeting on Tuesday in Brussels, Goyal addressed the media, highlighting the TTC's importance as a significant addition to FTA negotiations and announcing the potential of an India-EU alliance to shape international relations in the twenty-first century.
Goyal's speech focused heavily on India's proactive engagement with the EU on the Carbon Border Adjustment Mechanism (CBAM) issue. He reaffirmed that the CBAM does not want to construct trade obstacles, but rather to promote sustainable practises. Both parties are actively looking for a cooperative solution that addresses CBAM concerns.
Goyal also utilised the opportunity to dispel myths about India's tariff system. While certain tariffs can appear high, he contended that most of them are actually rather low, especially those imposed on intermediaries and raw commodities. Duties on IT products, which are essential to India's economic development, are likewise negligible. He also emphasised that India's actual tariff rates are lower than those set by the WTO.
The minister expressed his gratitude to Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen for their contributions to establishing this improved interaction between India and the EU.
Goyal emphasised that both India and the European Union, as open-market economies, vibrant democracies, and diverse societies, share common goals of security, prosperity, and sustainable development. He praised the creation of the TTC as a crucial platform for addressing important issues related to trade, technology trust, and security.
What is Free Trade Agreement: A free trade agreement (FTA) is a treaty or agreement between two or more countries that aims to facilitate trade and reduce barriers to the movement of goods, services, and investments between them. India, like many other countries, has entered into various free trade agreements with different nations and regional blocs.
India has, in the past, signed FTAs with several countries and regional groups, such as the South Asian Association for Regional Cooperation (SAARC), the Association of Southeast Asian Nations (ASEAN), and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), among others. These agreements aim to enhance economic cooperation and promote trade and investment flows between India and its partner countries.
Making headway in talks on new trade pact with India and EFTA
