HomeFutures and CommoditiesEU seeks trade deal with India for genuine market access, prioritizing fair...

EU seeks trade deal with India for genuine market access, prioritizing fair and unrestricted trade.

Eager European Union Awaits Real Market Access in Free Trade Deal with India

EU Member States Demand Greater Market Access for Free Trade Agreement with India

European Union member states are eagerly seeking to finalize a free trade deal with India, but only if it guarantees genuine access to the Indian market, according to Spanish Deputy Trade Minister Xiana Mendez. Speaking at an EU meeting chaired by Spain, Mendez emphasized the importance of India providing substantial market access as negotiations between the EU and India gain momentum.

EU Seeks Comprehensive Pact to Counterbalance China’s Influence

The EU and India have recently resumed negotiations for a free trade agreement that aims to counterbalance China’s expanding influence in the Indo-Pacific region. However, the EU has expressed concerns over India’s current proposals, considering them insufficient for establishing a comprehensive agreement. Mendez reaffirmed the member states’ strong interest in reinforcing the negotiations but stressed that genuine market access is crucial for the deal to be effective.

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Interests and Expectations from Both Sides

The EU is particularly interested in greater access to the Indian market for its automotive sector, alcoholic beverages, and agri-food products such as cheese. On the other hand, India seeks favorable conditions for its services sector and easier visa access to the EU for Indian professionals. Both parties are aiming to strike a mutually beneficial agreement that addresses these interests and expectations.

Potential Agreement with the United States on Steel Trade

Additionally, Mendez revealed that the EU is hopeful about reaching an agreement with the United States on steel trade by the end of the year. Although a solution was not expected during the recent EU-U.S. summit in Washington, Mendez stated that a sophisticated and comprehensive deal should be finalized before the year concludes. The United States has already suspended import tariffs on EU steel and aluminum, provided both sides reach an agreement on tackling overcapacity and promoting greener steel production.

Remaining Challenges and Negotiations

While the issue of import duties has seen a definitive resolution, discussions are still underway regarding excess capacity and decarbonization of the steel industry. The EU and the United States are determined to find common ground on these challenges to ensure a sustainable and environmentally responsible steel trade.

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By pursuing a free trade agreement with India and resolving steel trade issues with the United States, the European Union is taking significant steps to strengthen international trade relationships and promote economic growth.

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