Commerce and Industry Minister Piyush Goyal said on Sunday that negotiations for the proposed comprehensive free trade agreement (FTA) between India and the European Union (EU) are moving swiftly, with the possibility of concluding the deal before the end of the year. He also mentioned that India would raise concerns regarding certain EU regulations, such as the carbon tax and deforestation rules, during the trade discussions.

Speaking to reporters, Goyal stated that both sides have their concerns and issues to discuss, but all topics are on the table for negotiation. He expressed confidence that the negotiations would result in a fair, balanced, and equitable agreement. He emphasized that these matters would be addressed so that both parties could arrive at a strong agreement supporting better market access and facilitating smoother trade. Currently on a two-day visit, Goyal is scheduled to meet with French leaders and business representatives to promote trade and investment between India and France. When asked about the expected timeline for concluding the FTA talks, he noted that although there was never a fixed deadline, the rapid progress suggests that the deal could be finalized before the year ends.

Goyal also highlighted that there are few areas of disagreement between India and the EU. He pointed out that the two economies are largely complementary, with India’s priorities unlikely to harm the EU economy, and European goods and services expected to support India’s growth story. However, he acknowledged that sensitive issues exist on both sides and must be resolved amicably. Regarding topics such as gender and sustainability, Goyal stated that India is open to comprehensive discussions. He noted that India is proactive on gender issues and is at the forefront when it comes to sustainability, showing no hesitation in engaging in such dialogues.

Goyal is also set to meet EU Trade and Economic Security Commissioner Marcos Sefcovic on June 2 to further discuss the agreement. There are ongoing talks about an early harvest or interim trade deal that could cover intellectual property rights, government procurement, tariffs, and non-tariff barriers. The EU is seeking significant duty cuts on automobiles and medical devices, along with tax reductions on wines, spirits, meat, and poultry, and a strong intellectual property regime.

If the pact is successfully concluded, Indian exports such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery could become more competitive in the EU market. The negotiations between India and the 27-member EU bloc resumed in June 2022 after more than eight years of pause, addressing a comprehensive FTA, investment protection, and geographical indications. The talks had originally stalled in 2013 due to differences over market access.

Earlier this year, on February 28, Prime Minister Narendra Modi and the European Commission President agreed to finalize the free trade deal by the end of 2024. The negotiations cover 23 policy areas, including trade in goods and services, investment, sanitary and phytosanitary measures, technical barriers, trade remedies, rules of origin, customs, competition, trade defense, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development. India’s bilateral trade in goods with the EU reached $137.41 billion in 2023-24, with exports of $75.92 billion and imports of $61.48 billion, making the EU India’s largest trading partner for goods. The EU accounts for about 17 percent of India’s total exports, while India represents 9 percent of the EU’s overseas exports. Additionally, bilateral trade in services between the two was estimated at $51.45 billion in 2023.

On the issue of the World Trade Organization (WTO), Goyal stressed the urgency of restoring the WTO’s dispute resolution mechanism to maintain the core principles of the multilateral body. He noted that a mini-ministerial WTO meeting is scheduled for June 3, where trade ministers from major economies will discuss strengthening the multilateral trading system, WTO reforms, and promoting open international trade. Goyal said it was crucial to quickly finalize and restore the dispute resolution mechanism to ensure justice can be delivered and WTO principles upheld. During his visit, Goyal also met with Patrick Pouyanne, CEO of Total Energies, to discuss the company’s investment plans in India. He shared that the talks focused on opportunities for deeper collaboration in the renewable energy sector. Goyal’s visit to India spans three days.