India trade talks ‘extremely difficult,’ EU negotiator warns
Euractiv | 19 March 2025
India trade talks ‘extremely difficult,’ EU negotiator warns
by Sofia Sanchez Manzanaro
The Commission’s chief India negotiator has cast doubt on sealing a full free trade deal with India by year-end, citing tough negotiations in key sectors like spirits and automobiles.
Christophe Kiener admitted to MEPs on Wednesday that New Delhi might force the EU to “readjust” its trade approach to meet the 2025 deadline.
“It is quite obvious that we’re not going to be able to finalise a fully fledged free trade agreement à la New Zealand with India in the next 10 months,” he said, stressing that their approach to trade differs fundamentally beyond size or geography.
Kiener said that both Commission President Ursula von der Leyen and India’s PM Narendra Modi had set up an “extremely ambitious timeline” and that negotiations have rapidly accelerated. “We have come to the moment where we will have to make some difficult decisions,” he told MEPs.
Talks last week in Brussels were “extremely difficult” on trade in goods.
While India recently cut US bourbon tariffs by 50% to ease tensions with Washington, the EU has seen “no improvement whatsoever” on key sectors like spirits, wines, and beers – still hit with 150% tariffs – during recent discussions. The issue stalled talks in 2013, Kiener added.
Why agriculture remains a sticking point in EU-India trade talks
India has long maintained a protectionist policy, imposing some of the world’s highest tariffs to protect its developing economy.
On cars, India made some concessions, but Kiener said the proposed import volumes were too small, both in relation to India’s market and past negotiations.
Rules of origin remain another sticking point. He described India and the EU as coming from “two different galaxies,” noting that India’s high tariffs create a strong “temptation to fraud” in exploiting trade preferences.
On trade and sustainable development, he said progress was made, but India is “in no way able” to accept sustainability rules other trade partners have agreed to. “So no sanctions, no dispute settlement, no legally binding provisions, no involvement of civil society,” he added.
Concerning new EU environmental and climate legislation, he added that India had requested exemptions or long transition periods on regulations ranging from CBAM and the EU’s anti-deforestation regulation to the due diligence directive.
India has also demanded exemptions or long transition periods for EU green rules, including CBAM and the EU anti-deforestation regulation. “The Indian chief negotiator has been very clear that unless we do something concrete for them on CBAM, there shall be no agreement between the EU and India,” Kiener warned.
The next talks are set for early May in New Delhi, followed by another round in June in Brussels. An EU-India summit is planned for year-end.
