Trade pact with India by year-end: EU commissioner

EU Trade Commissioner Maros Sefcovic has said India and the European Union are working to finalise a ground-breaking free trade agreement by December. 

Sefcovic, who is on a two-day visit to New Delhi, addressed the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA) along with Commerce and Industry Minister Piyush Goyal, highlighting the agreement's potential to unlock vast opportunities in trade and investment.

Sefcovic described the ongoing talks as the "most intensive and constructive" in the history of India-EU relations. He pointed out that while past attempts at an FTA had faltered, the current process is marked by "unprecedented momentum, seriousness, mutual trust, and shared ambition." The goal, he added, is an "economically meaningful package" that promotes not just goods and services trade but also investment, sustainable practices, and innovation -- creating a true "win-win" for producers, exporters, and consumers. He added that India was fast becoming a key engine of the global economy and that a strong economic partnership with India will add significant value to the European Union, just as Europe’s technology and scale will benefit India’s growth story.

Goyal emphasised that the FTA would be a "comprehensive economic partnership with strategic elements", balancing mutual interests without one-sided concessions. "Such an agreement cannot be a one-sided arrangement; every negotiation involves a certain degree of give and take to ensure fairness and balance," he said, urging stakeholders not to let the pursuit of perfection hinder progress. He expressed firm confidence in the negotiations' positive trajectory.

Maros Sefcovic and EU Agriculture and Food Commissioner Christophe Hansen arrived in New Delhi on Thursday to take stock of ongoing trade negotiations between India and EU. Goyal hosted a dinner for the European leaders on Thursday. According to officials, both sides held meetings on the trade pact on Friday. Earlier on Monday, 13th round of negotiations were commenced between India-EU on the FTA. The negotiation went throughout the week as both sides are maximising efforts to finalise the pact by year end in line with the commitment made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.