India and US Prepare for New Round of Talks Amid Growing Tensions

Amid the anticipation of a successful deal with the US, negotiations for the proposed free-trade agreement between India and the EU are progressing well, but differences still need to be ironed out in certain areas such as steel, automobiles and non-tariff barriers, according to top officials in the commerce ministry.

So far, five rounds of negotiations between India and the US have been completed. In February this year, leaders of the two large economies directed officials to negotiate a proposed bilateral trade agreement (BTA). It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025.

Last month, commerce and industry minister Piyush Goyal led an official delegation to New York for trade talks and both the nations decided to continue negotiations for an early conclusion of a mutually beneficial bilateral trade agreement.

Meanwhile, a senior official said that negotiations for the proposed free trade agreement between India and the EU are progressing well. “Though India and the 27-nation European Union (EU) last week concluded the 14th round of talks for the agreement in Brussels, issues on steel and automobiles remained unresolved. We are trying to sort it out soon, while no major issue is pending in agriculture,” the official said.

The five-day talks began on October 6 in Brussels to iron out differences on different issues related to goods and services for the early conclusion of the negotiations. Indian negotiators later joined, led by commerce secretary Rajesh Agrawal in the closing days of the round for providing a push to the negotiations. Agrawal held discussions with EU director general for trade Sabine Weyand during the visit.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. It was stalled in 2013 due to differences on the level of opening up markets. Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in other products like wine, spirits, meat, poultry, and a strong intellectual property regime.