India and European Union Conclude Negotiations for Long-Awaited Free Trade Agreement
India and the European Union have announced the conclusion of negotiations for a Free Trade Agreement (FTA) during the 77th Republic Day celebrations. The talks, which began in 2007, faced numerous hurdles over two decades, including market access for sensitive agricultural items and environmental regulations. The deal, approved by both sides, now undergoes 'legal scrubbing' before ratification by the European Parliament and the 27 EU member states. This agreement is expected to significantly boost bilateral trade, which already exceeds $136 billion, and upgrade the strategic partnership to include enhanced defense and maritime security cooperation.
Key Points
- Negotiations for the India-EU FTA first launched in 2007 and were relaunched in 2022 after a long freeze.
- The agreement covers trade in goods, services, and investment, while setting aside sectors where common ground could not be reached.
- The EU acts as a single customs bloc, making this one of the world's largest bilateral trade deals.
- Both sides are also expected to upgrade their strategic partnership to include cyber security and counter-terrorism.
Exam Facts
- Bilateral trade between India and EU currently exceeds $136 billion.
- EU leaders present: Ursula von der Leyen (Commission President) and Antonio Costa (Council President).
- The FTA talks were relaunched in 2022 after a freeze between 2014 and 2022.
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