Looking forward to advancing EU-India FTA talks: Spanish President Sanchez

Spanish President Pedro Sanchez emphasizes the significant potential for a stronger EU-India partnership, focusing on advancing the EU-India FTA negotiations. He highlights Spain’s investments, renewable energy expertise, and transportation systems as key contributions to India’s infrastructure and green energy goals, promoting mutual economic growth.

Ethanol production increase in India for 2024/25 will reduce domestic sugar availability and halt exports, as 5 million metric tons of sucrose are diverted to ethanol. Net sugar production is forecasted at 27.5 million tons against a domestic consumption of 29.5 million tons, causing reduced stock levels.

The WTO’s dispute settlement body granted a joint request from India and Chinese Taipei to delay the adoption of the panel ruling against India’s import duties on high-tech goods till April 2025, as both parties work towards a mutual resolution.

Swiss companies are investing more in India, encouraged by a new trade deal with the European Free Trade Association. This agreement will reduce tariffs on exports and open up the Indian market. Swiss firms like ABB and Kuehne+Nagel are expanding their operations, while the deal will also boost Indian exports of pharmaceuticals, clothing, and machinery.

India is seeking compensation from Turkiye following Ankara’s decision to extend safeguard measures on polyester staple fibres, impacting trade worth USD 22.18 million in 2023-24. India, citing WTO norms, may impose retaliatory customs duties if consultations do not resolve the issue.

In a bid to fill trade finance gaps in African countries, the State Bank of India and India Exim Bank are supporting businesses by providing credit lines and trade loans. These initiatives, which complement rather than compete with each other, aim to aid smaller corporates and enhance cross-border trade post-COVID-19.

Piyush Goyal, speaking at the 18th Asia Pacific Conference of German Business in New Delhi, advocated for a deeper strategic partnership and a Free Trade Agreement between India and the EU, emphasizing mutual respect in negotiations and highlighting the synergies between India’s scaling capabilities and Germany’s precision engineering.

Goyal said that first the sensitivities between the 27 countries of the EU and 27 states of India need to be respected.”If we respect each other’s sensitivities, like with UAE, Australia and EFTA, we respected each other’s sensitivities, and not encroach on issues which can hurt. For example, dairy, I just cannot open up dairy. […]

The commerce ministry aims to finalize an SOP document for FTA negotiations by year-end, involving input from 17 ministries. This document will standardize negotiation processes and include best practices, assisting future negotiators. A recent ‘Chintan Shivir’ addressed various FTA-related topics, reinforcing India’s ongoing trade discussions globally.

India is closely watching the Indo-Pacific Economic Framework (IPEF) trade negotiations and has not yet decided to join the trade pillar. India is also engaged in critical mineral dialogue and negotiating trade pacts with Australia and ASEAN countries. The outcomes will determine India’s next steps in these international trade agreements.