Commerce Secretary Rajesh Agrawal stated on Thursday that India and the European Union are moving very close to finalizing a significant trade deal. Negotiators from both sides are working intensely to resolve remaining differences before leaders meet around Republic Day in New Delhi.
Progress in India-EU Negotiations
Agrawal revealed that negotiators have successfully closed 20 out of 24 chapters completely in the trade talks. A few critical issues still require discussion, with teams engaged virtually to meet the timeline before the leadership summit.
"We are virtually engaged and we are trying to see if we can meet the timeline before our leaders meet," Agrawal told reporters, without providing specific details on the outstanding matters.
Carbon Tax and Contentious Points
One of the major unresolved issues involves the European Union's carbon tax proposal. The 27-nation trading bloc's environmental measure remains a sticking point in the negotiations, requiring further dialogue between the two parties.
Potential Announcement Timeline
If negotiations proceed smoothly, both sides hope to announce the conclusion of talks at the India-EU Summit scheduled for January 27. The actual signing of the agreement would follow this announcement at a later date.
"That will be a good occasion to announce. We are making the right endeavor," the commerce secretary commented about the potential summit announcement.
US Trade Deal Status
While progress continues with the European Union, Agrawal addressed the status of bilateral trade negotiations with the United States. He emphasized that the US trade deal will be announced when both countries feel fully prepared.
Ongoing US Engagement
Commerce and Industry Minister Piyush Goyal held discussions with U.S. Trade Representative Jamieson Greer in late November. Officials from both nations continue to address pending issues through virtual meetings.
"It's very near, but we cannot put a deadline because that will happen when both sides are ready and they feel that this is the right time to announce," Agrawal explained regarding the US negotiations.
Background of US Trade Talks
India and the United States initiated trade discussions in March after Prime Minister Narendra Modi and then-President Donald Trump announced plans to finalize a bilateral trade agreement by last fall. Recent comments from US Commerce Secretary Howard Lutnick suggested delays due to communication issues, but Indian officials have rejected these claims as inaccurate.
Positive Outlook on US Negotiations
When questioned about the possibility of the US trade agreement not materializing, Agrawal maintained an optimistic perspective. He stressed that both nations remain actively engaged in constructive dialogue.
"We get into all negotiations with a very positive and optimistic mindset. We are engaged with the US. Both sides are engaged. So, both sides feel that this can be done," the commerce secretary affirmed.
The simultaneous progress on two major trade fronts demonstrates India's active engagement in strengthening international economic partnerships while addressing domestic concerns and negotiating favorable terms for all parties involved.
