India-EU FTA Push Amid US Reciprocal Tariffs
Why in the news
US reciprocal tariffs hit India and the EU, so the two sides sped up their free trade agreement (FTA) talks. China retaliated with a 34% tariff on US goods and the EU prepared countermeasures.
Key facts
- Washington’s reciprocal duty: 26% for India versus 20% for the EU.
- Piyush Goyal and Maroš Šefčovič were expected to hold talks soon.
- The 11th round is set for Delhi in the week of 5 May; the 10th was in Brussels in March.
- Aim: conclude the FTA by end-2025. A US trade deal’s first phase is targeted for fall 2025.
| FY24 trade with EU | Value | Share |
|---|---|---|
| Exports | $75.9 billion | 17.4% of exports |
| Imports | $61.5 billion | 9% of imports |
The EU is India’s second-largest goods partner, with the balance in India’s favour.
Background and concerns
- The BTIA talks began in 2007, hit a wall in 2013 following fifteen rounds with no result, and were revived in 2022.
- Sticking points: tariff cuts, regulatory standards, investment protection.
- Talks with both the EU and the US could let India leverage concessions.
Exam angle
- Agreement: India-EU FTA / BTIA.
- Persons: Piyush Goyal, Maroš Šefčovič.