Financial Times: India, EU agree on half of deal chapters

India and the EU have reached agreement on nearly half of the chapters in a proposed trade deal, aiming to finalise the agreement by December.

Talks have progressed on eight out of approximately 20 chapters, covering areas like rules of origin and intellectual property rights. This comes after a renewed EU push earlier this year to strengthen economic ties with India, the world’s fifth-largest economy, Caliber.Az reports via Financial Times.

The two sides have agreed to exclude some “sensitive” agricultural products, particularly dairy, a major concern for Indian farmers.

“The expectation is that we will close a deal in December,” said one person familiar with India’s stance. “Good progress has been made” due to the “momentum that has picked up in the last two rounds.”

The commitment to reach a deal this year was reaffirmed during a February meeting between Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. Indian Commerce Minister Piyush Goyal and EU Trade Commissioner Maroš Šefčovič also met in Paris this week. EU trade spokesperson Olof Gill said negotiations had “intensified” and were “advancing across the board.” 

A 12th round of talks is expected in early July. However, key issues remain unresolved. The EU is pushing for “economically meaningful market access,” particularly for cars and alcoholic beverages. India, meanwhile, wants to maintain high tariffs on dairy and rice, both excluded from the talks. 

Another sticking point is the EU’s planned carbon border adjustment mechanism (CBAM), which India says could hurt its heavy industry. CBAM “would have an adverse effect on trade,” said a New Delhi-based source. Despite the challenges, both sides remain committed to concluding the deal by year’s end.

By Naila Huseynova