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Negotiations on the India-EU free trade agreement, stalled for over two years, are likely to re-start in August, Commerce Secretary Rajeev Kher said.
India may also be able to conclude a free trade pact with Australia by the year-end.
Kher said the time was ripe for a free trade pact with the EU as exports from both sides were not growing because of the economic uncertainty in the Zone.
“Sectors like textile and leather have taken a beating in the EU. If we can get them to reduce tariffs in these items as part of the trade pact, it would push exports,” he said at an interaction with the media on Monday. Kher is retiring from Government service this month-end.
Commerce and Industry Minister Nirmala Sitharaman has already discussed the matter with the EU Trade Commissioner and both sides are interested in getting back to the negotiating table soon. “The EU chief negotiator would be available in August. That is when the talks are likely to re-start,” Kher said.
Talks on the free trade pact, officially known as the broad-based trade and investment agreement, got stuck in 2013, as the EU wanted commitments in insurance, legal and retail sectors as well as government procurement while looking for even steeper cuts in import duties for cars.
“An agreement with the EU is very much feasible as long as it is realistic. For instance, we cannot give commitments in sectors such as multi-brand retail or legal, where we do not have domestic legislation,” he said.
Largest destination The 28-member EU is the largest regional export destination for India with the country shipping goods worth $51.63 billion to the bloc in 2013-14 accounting for over 16 per cent of its total exports.
Kher said that if India wanted to get out of the negative growth phase in exports, it has to focus on FTAs. On the FTA being negotiated with Australia, Kher said that offers on goods were already being exchanged and offers on services were likely to be exchanged by July-end.
“We would need about two more rounds of negotiations after that to finish off the talks,” he said.
New Delhi was also focussing on free trade pacts with countries like Peru and Russia as these were important destination. “Peru is important for us to get a foot-hold into the Latin American market. Russia is a huge market in itself,” he said.
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