The two leaders also agreed to build a commercially meaningful trade agenda and work towards a mutually beneficial Free Trade Agreement (FTA).
As per a statement issued by the commerce and industry ministry, India said it would build a commercially meaningful trade agenda with the EU, which is fair and equitable, addressing the tariff and non-tariff barriers through simplification and cost competitiveness for benefits of businesses from both sides.
“India would work together with the EU for developing cutting edge technologies, secure critical raw material supply chains and build resilient supply chains- reducing dependencies on non-market economies and developing closer economic ties between India and the EU,” it said.
“The two leaders outlined political directions to both the teams to develop a mutually beneficial agenda for trade and investment and a robust FTA in an expedited manner to meet global challenges,” the ministry said.They reviewed progress in the trade and investment group of the India-EU Trade and Technology Council (TTC), agreed to address legacy issues and laid a roadmap for continuous consultations between senior officials from both sides and at ministerial level.Both sides also discussed increasing cooperation in the area of trade and sustainable development in a fair manner keeping in mind the respective level of developments and the principle of common but differentiated responsibility.
Goyal’s Brussels visit assumes significance as the government had then said that “following nine rounds of intensive negotiations, FTA discussions require strategic political guidance to conclude a commercially significant and mutually beneficial agreement, with due consideration given to each side’s sensitivities”.
India has been raising concerns regarding the EU’s sustainability measures, such as Carbon Border Adjustment Mechanism and Deforestation Regulation, and had termed them non-tariff barriers. In October, Goyal said that the two sides must understand, listen and appreciate each other’s sensitivities and that “extraneous” issues such as labour and climate change should be discussed at international forums.
The two sides have failed to resolve certain issues related to state-owned enterprises, ‘Make in India’ and its application to EU bidders and goods in the negotiations on government procurement, and their positions on the negotiations on rules of origin, which are key to checking FTA circumvention and cheap imports, and technical regulations and conformity assessment were different on some products in the previous round.
Content Source: economictimes.indiatimes.com