India-EU Free Trade Agreement (FTA) Negotiations

Energy and Raw Material Chapter

• India succeeded in setting aside the negotiations on the "energy and raw material" chapter in the proposed FTA with the EU.
• The EU had initially included this chapter to secure an uninterrupted supply of materials like petroleum, chemicals, cotton, iron, steel, and copper, without export restrictions from India.
• The decision to pause discussions was confirmed after the 11th round of negotiations held in New Delhi from May 12 to 16.

Geopolitical Context

• Global events such as the Covid-19 pandemic and the Russia-Ukraine conflict have increased the emphasis on securing energy and raw materials.
• China's export restrictions on rare earth magnets highlight the need for resilient supply chains.
• The EU aims to limit dependence on a single country for critical raw materials to 65% by 2030.

Criticism of EU's Trade Policy

• Ajay Srivastava criticized the EU for its inconsistent trade policy, demanding open access to resources from developing nations while maintaining its own restrictions.
• He highlighted the need for a fair FTA with mutual obligations rather than a one-sided flow of raw materials.

Progress in Other FTA Chapters

• The EU and India concluded discussions on chapters including transparency, good regulatory practices, Customs and trade facilitation, and intellectual property rights (IPR).
• IPR discussions covered topics like general provisions, copyright, enforcement, and cooperation.
• Both sides planned further exchanges on market access, focusing on industrial products and ongoing talks for the agri-food sector.

Advancements in Services and Digital Trade

• Significant progress on investment liberalization beyond services was noted, especially on the scope and definitions of the chapter.
• In digital trade, substantive progress was made on e-invoicing, e-authentication, e-contracts, and consumer protection, though some issues remain unresolved.

Conclusion and Future Plans

• The FTA is expected to be finalized by the end of 2025, as announced by the EU Commission President and the Indian Prime Minister.
• Union Commerce and Industry Minister Piyush Goyal indicated that a deal might be reached before the projected deadline.