The current negotiations between India and the EU for an FTA are a shade different, says Hervé Delphin, Ambassador of the European Union (EU) to India.
“This is not the same FTA as it was a decade ago. Don’t read this through the lens of the past. I would like to call it EU-India FTA negotiations 2.0. There is a sharper sense of resiliency today because of the tariff war that is going on. So, I think this is an FTA that is more than trade,” he said while speaking at the ‘India’s World Conclave 2025’.
The FTA once concluded, will give both India and Europe the opportunity to de-risk the impact of the US tariff war. The India-EU FTA is based on predictability and on the global trading rules as laid out under the World Trade Organisation (WTO).
“FTAs are always a win-win for both partners. It is always beneficial to both parties because bilateral trade grows, jobs grow … So we are not in a zero-sum,” Delphin said, adding, EU is seeking more market access for its automobiles and steel.
The India-EU FTA negotiations were relaunched in 2022 after being suspended for nearly a decade. They included launching new negotiations for a stand-alone Investment Protection Agreement and a Geographical Indications Agreement as well.
The talks for the ambitious trade pact was originally launched in June 2007.
Delphin said both sides have stopped conducting rounds of negotiations and have shifted to a “continuous negotiating mode” for which a high-powered delegation of trade negotiators are going to visit India starting this week.
Earlier this year, during the visit of President of the European Commission Ursula von der Leyen to India, both sides agreed to conclude the FTA by the end of 2025 even as the Russia-Ukraine war and the US’ tariff war have adversely impacted EU’s economic growth.
“As both EU businesses as well as Indian businesses want the deal to go through, negotiators will have no option but to cut a deal… We look forward to get the FTA done,” the envoy said.
The EU wants India to provide more market access by way of reduction and in some cases even elimination of tariffs on European cars, steel, wines and spirits. Due to these demands the FTA hit a dead-end in 2013 under the UPA-led government.
The EU also wants India to expedite the signing of the two additional agreements on investment protection and geographical indication while New Delhi has sought more time on negotiating those.
Russia Question
Reiterating EU’s position on the ongoing Russia-Ukraine war, the envoy said, India’s relationship with Russia has become a stumbling block between New Delhi and Brussels.
“Let’s face it. We have a Russia question in the India-EU question. There is no way of getting around that. Strategically as much as we are converging, there is no way we are not aligning… There will be differences. But there has to be understanding of our respective strategic and security predicament,” Delphin said.
The remarks came a day before Russian President Vladimir Putin’s state visit to India.
“There is a clear aggressor. Russia is the invading neighbouring country … We have a war going on … Russia is an aggressor. So India has to factor that in. As much as European countries will never do any harm to India’s security interests, we also expect the same from India,” said Delphin.
Earlier this year in September, while releasing a ‘New Strategic EU-India Agenda’, EU’s top diplomat, Kaja Kallas, said, “If everything is not agreed, then nothing is agreed.” She was referring to India’s growing ties with Russia, which has become an issue with Brussels.
