India and the European Union (EU) are expected to hold talks again within a few days on Trump tariffs, stated a report by CNBC TV18. The trade ministers will discuss reduction of tariffs, particularly on cars and components, sources told CNBC TV18. The EU has been, meanwhile, following India-US trade talks closely, especially on agriculture and dairy sectors.Â
India is keen to conclude the Free Trade Agreement (FTA) with the 27-nation European Union (EU) bloc this year and the US tariff announcement has accelerated the efforts by both the parties. “The EU is looking for a fully WTO compliant FTA with India, which will be respected in the long term,” sources said.
Per reports, EU companies are very keen to step up investments but technical barriers are holding them back.Â
The India-EU FTA is a long-awaited trade deal aimed at boosting economic ties between India and the European Union and the negotiations for the same started in 2007 but were stalled due to differences on issues. Both the parties have made good progress on some aspects of the negotiations for the FTA that they want to conclude by the year-end, with US tariffs strengthening the rationale for the deal.
During a visit to India in February, accompanied by nearly the entire EU College of Commissioners, European Commission President Ursula von der Leyen and Prime Minister Narendra Modi had strongly endorsed the ambitious objective of concluding the Free Trade Agreement (FTA) by the end of 2025. The negotiations, which initially began in 2007, were put on hold in 2013 before being restarted in 2022.
