In the ongoing negotiations for a Free Trade Agreement (FTA) between India and the European Union (EU), significant developments have emerged. Both parties have made considerable progress in establishing norms for dispute settlement mechanisms within the agreement. However, discussions concerning the rules of origin, which determine the national source of a product, have encountered challenges, resulting in a stalemate.
The EU has expressed concerns over India’s high tariffs on automobiles and alcoholic beverages, seeking reductions to enhance market access. Conversely, India emphasizes the need for differential tariffs between developed and developing nations, aligning with World Trade Organization guidelines.
Additionally, India’s apprehensions regarding the EU’s proposed carbon border tax and deforestation regulations have added complexity to the negotiations. These regulatory measures are perceived by India as potential barriers to its exports, further contributing to the current stalemate.
Despite these challenges, both sides remain committed to advancing the negotiations, with the next round scheduled to commence on May 5 in New Delhi.
