NEW DELHI (Reuters) -Trade talks between India and the European Union have entered a crucial phase and negotiators are working intensively to meet a year-end deadline for signing the free trade pact, a top European Union Official said on Tuesday.
The EU is India’s biggest trading partner in goods, with bilateral trade hitting $137.5 billion in the 2023/24 fiscal year, up nearly 90% over the past decade.
"We are now maximising our efforts to finalise negotiations by the end of the year,” Maros Sefcovic, EU trade chief, said at an event, noting they were working on a deal to "unlock investment, reduce barriers, expand market access, and enhance supply chains, to the benefit of both sides."
Negotiations, relaunched in 2022, have gained pace since the re-election of U.S. President Donald Trump. Faced with Trump's tariffs, Brussels has accelerated its push for trade alliances, sealing deals with Mexico and the South American Mercosur countries and stepping up talks with India, Indonesia and the United Arab Emirates.
Echoing Sefcovic's comments, India's Trade Minister Piyush Goyal said negotiators were working hard for a balanced and mutually beneficial deal that would unlock opportunities for both sides in trade, investment, technology transfer, and deeper economic engagement.
Sefcovic is joined in Delhi by European Agriculture Commissioner Christophe Hansen, who is holding decisive negotiations this week to resolve differences over agriculture, dairy and non-tariff barriers.
The EU has sought steep duty cuts on vehicles, medical devices, wine, spirits and dairy products, while India is pressing for greater access for its textiles, pharmaceuticals, steel and petroleum products, officials have said.
The deal had been delayed for many years by New Delhi's reluctance to lower tariffs in some areas. The European Union wants India to lower tariffs of more than 100% on imported cars, whiskey and wine.
(Reporting by Manoj KumarEditing by Alexandra Hudson)
