Non-tariff barriers in the countries part of the European Union (EU) are impeding India’s trade with the bloc and there is a need to address long-pending issues as a confidence-building measure, Commerce Minister Piyush Goyal pointed out in a video meeting with a team of top EU officials.

Goyal and Maroš Šefčovič, European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency, in their meeting agreed to explore a balanced, equitable, ambitious and mutually-beneficial free trade agreement (FTA), according to an official statement issued by the Ministry of Commerce & Industry on Friday.

“Following 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,” the statement noted.

Market access

While the average tariff in the EU bloc is much lower than in India, the non-tariff barriers are high. The Minister’s emphasis on bringing down the non-tariff barriers is important because an FTA with the bloc would be useful to Indian exporters and lead to increased market access only if these are lowered.

Non-tariff barriers could be in the form of stringent sanitary and phytosanitary norms, technical barriers as well as price control measures.

Both sides agreed to explore a balanced, equitable, ambitious and mutually beneficial FTA.

The video conference was the first introductory meeting between the two leaders after the assumption of the charge of the new European Commission of the EU and was convened to discuss the India-EU FTA negotiations, High Level Dialogue, India-EU Trade and Technology Council, and other high level engagements & trade and investment issues. 

Goyal congratulated EU Trade Commissioner Šefčovič on his new role in the European Commission and expressed confidence in working together to develop a new strategic India-EU agenda. Recognising shared values of democracy and rule of law, the two leaders agreed to explore ways to ensure greater wealth and prosperity for about 2 billion people of India and the EU, the statement pointed out.

Published on December 20, 2024