Free trade negotiations between India and the EU have resumed after a 9-year pause

27 Jun 2022 , 02:08 PM

After a nine-year hiatus, India and the European Union started talking about a free trade agreement on Monday as Western nations try to wean New Delhi away from its tight economic ties to Russia.

India, which former US President Donald Trump dubbed the “tariff king,” has recently shown a greater willingness to remove trade barriers and is currently discussing agreements with a number of other nations.

Even as it ups its oil imports from its longtime strategic partner and top armaments supplier, the Asian powerhouse has declined to denounce Russia’s invasion of Ukraine.

India’s second-largest trading partner after the United States is the European Union, but negotiations with the group ceased in 2013 over problems like patent protection and tariff reductions.

According to New Delhi, trade in goods reached a record high of $116 billion in 2021—22, with India exporting $65 billion to the 27-member European Union.

“The goal of the trade talks is for them to be comprehensive, balanced, and broadly based on the values of justice and reciprocity. The market access issues that are preventing bilateral trade will also be discussed “When announcing the first round of negotiations in Delhi, which were scheduled to last through Friday, the Indian commerce ministry stated earlier this month.

In order to complete a comprehensive free-trade agreement by the end of the year, India signed a significant economic partnership agreement with the United Arab Emirates in February and an interim agreement with Australia in April.

India is also negotiating trade agreements with Israel, Britain, and Canada. During a visit in April, Prime Minister Boris Johnson stated that India and Britain wanted to reach a deal by October.