BARRIERS BEYOND TARIFFS
Exporters are also hoping the agreement will help address non-tariff barriers, including the EU’s stringent sustainability and compliance requirements.
One key concern is the carbon border adjustment mechanism, which came into force this year and could impose duties of more than 15 per cent on Indian steel and cement exports.
“We have to be conscious of that,” said Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations.
“We have to look into in what way we can address those challenges because these kinds of non-tariff measures will be invoked by countries from time to time.”
Negotiations on the EU-India trade pact were relaunched in 2022, nearly 15 years after talks first began in 2007.
Indian Foreign Secretary Vikram Misri said recent global developments have injected fresh urgency into the process.
“There is no doubt that on account of developments in recent years, the urgency in concluding this FTA has increased,” he noted.
Beyond trade, the summit is expected to cover defence cooperation and a potential talent mobility agreement to ease the movement of Indian professionals to Europe.
Observers see the talks as a strategic pivot for both sides – a move to diversify away from a more protectionist US and reduce dependence on Chinese supply chains.
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