Goyal said that Italy and France have offered unstinted support for the early conclusion of negotiations for the India-EU trade agreement.
During the meetings in Italy and France, he said, India has emphasised regarding the different economic conditions and per capita income in the two regions.
But the kind of business opportunities which India provides for EU businesses are huge and “nobody can provide those in the world”, he added.
“Keeping all this in mind, we would do the FTA… We will protect the interests of farmers and dairy sector… We have done that with UAE and Australia trade pacts also,” Goyal has said.
Chief negotiators of India and the European Union (EU) are scheduled to meet from June 19-23 in New Delhi for the fifth round of negotiations.
India and the 27-nation bloc resumed negotiations on June 17 last year following a gap of over eight years on the proposed agreements on trade, investments and Geographical Indications (GI). Top officials at the commerce secretary level would meet in August to review the progress of talks. India had started negotiations for a trade pact with the EU in 2007 but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits and the movement of professionals.
India’s merchandise exports to EU member countries stood at regarding USD 65 billion in 2021-22, while imports aggregated USD 51.4 billion.
A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.
“India will not compromise on its interests… that is not possible,” Goyal has added.
On the European Union’s announcement of imposing carbon tax on certain sectors like metals, he said that the issue is part of the discussion.
India has earlier stated that it is concerned regarding the European Union’s announcement of imposing carbon tax, saying such measures require New Delhi to recalibrate its approach towards a free trade agreement.
The EU is introducing the Carbon Border Adjustment Mechanism (CBAM) from October 1 this year. CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026.
According to a report by economic think tank Global Trade Research Initiative (GTRI), the carbon border adjustment mechanism being implemented by the European Union will have an adverse impact on India’s exports of metals such as iron, steel and aluminium products to the EU.
In 2022, India’s 27 per cent exports of iron, steel, and aluminium products worth USD 8.2 billion went to the EU.
