Jaishankar holds talks with EU trade commissioner

The proposed India-EU free trade agreement is expected to bring the relationship between the two sides much closer with its positive impact being expected in a range of other sectors as well at a time the world is witnessing trade disruptions in view of Washington's tariff policy. It is learnt that the two sides have already resolved issues relating to agricultural market access, alcoholic beverages and are even making progress towards convergence on clauses relating to rules of origin. However, both sides are yet to find "landing zones" on steel, cars and the EU's Carbon Border Adjustment Mechanism, a tariff on carbon-intensive products such as steel and cement, as well as on certain regulatory mechanisms, sources said.

Meanwhile, External Affairs Minister S Jaishankar on Monday held talks with European Union's Trade Commissioner Maros Sefcovic and deliberated on the proposed free trade agreement between the two sides. Sefcovic is in New Delhi to advance negotiations for the long-awaited India-EU trade deal. The two sides are looking at sealing the free trade agreement at the India-EU summit to be held in New Delhi next week.

"A pleasure to meet European Trade & Economic Security Commissioner @MarosSefcovic in New Delhi today," Jaishankar said on social media. "Confident that the Commissioner and his team will have productive discussions in India," he said. Sefcovic said he was "pleased" to meet Jaishankar. "Continued, steady engagement on both sides remains essential to reinforce momentum and deliver results from our trade and investment talks -- supporting our overall partnership," he said on 'X'.

In September, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to finalise the trade deal by December. The European Union is India's biggest trade partner with bilateral trade in goods recording USD 135 billion in the financial year 2023-24. The FTA is expected to significantly enhance the two-way trade ties.