Because of the increasing competition from other major trading blocs, the 27-member European bloc finds itself compelled to expedite FTA negotiations to secure favorable terms and strengthen its strategic and economic ties with India as soon as possible.
By Nawab Khan---------------
The European Union-India free trade negotiations (FTA) are gaining momentum, with both parties striving to finalize an agreement by the end of 2025.
This optimistic view was expressed by European Commissioner for Trade Maros Sefcovic following his talks with the Indian Union Minister of Commerce & Industry Piyush Goyal in Brussels on Friday 23 May. This was Goyals’ second meeting with the EU official in Brussels this month.
Unlike their last meeting in the Belgian capital on May 1, during which the two officials addressed the press directly, this time they limited their communication to brief messages posted on the social platform X.
“Delighted to welcome my friend and counterpart @ PiyushGoyal. We continue to make progress. Let’s maintain the momentum – with hard work, clear focus – and I look forward to our next meeting soon,” said Sefcovic.
“Thank you for the warm welcome, my friend. We remain committed to the shared prosperity of India and the EU. Let us keep this pace going!” the Indian minister responded on X.
EU under pressure
Recent developments indicate that the EU is facing intense pressure to finalize an FTA with India as soon as possible and analysts opine that in July the two sides are expected to agree a deal on the FTA.
Goyal came to Brussels after concluding a four-day visit to the US where he held bilateral trade agreement talks between India and the US. During his visit, he held discussions with
several US officials on bilateral trade, tariff resolution. During his US visit, Goyal met with US Commerce Secretary Howard Lutnick with their discussions focused on expediting the first phase of Bilateral Trade Agreement (BTA).
On 6 May, India and the United Kingdom concluded an FTA after three years of negotiations. The EU urgency is further compounded by U.S. President Donald Trump's proposed 50% tariffs on EU goods effective June 1, 2025
Because of the increasing competition from other major trading blocs, the 27-member European bloc finds itself compelled to expedite FTA negotiations to secure favorable terms and strengthen its strategic and economic ties with India as soon as possible.
Bridging longstanding differences
The EU and India have intensified their FTA negotiations, with the 11th round concluded in New Delhi on 16 May. Both parties are considering finalizing the agreement in two phases to address complex issues more effectively, similar to India's previous trade pacts with Australia .
Analysts indicate that reaching an agreement by July is a realistic possibility, given the current pace of negotiations and the willingness of the involved parties to find common ground. Negotiators from both sides are aiming to bridge longstanding differences that have stalled previous talks, particularly around intellectual property rights, agricultural exports, and digital trade.
A successful agreement could not only boost GDP growth for both economies but also strengthen strategic cooperation in a shifting global landscape.
(The author is an Indian journalist who is a long time resident in Brussels. Views expressed are personal. He can be reached nawabbk98@gmail.com )
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