Trade Tussle Heats Up: EU Seeks US-Style Concessions from India in Free Trade Agreement

The European Union is urging India to incorporate a 'most-favoured-nation' clause at the forefront in their free trade agreement. The clause would entitle the concessions given to the US to automatically apply to the EU as well. The gesture comes at a time when India and the US are pursuing India-US bilateral trade negotiations, with the EU seeking commensurate advantages. Latest Brussels talks made limited headway, with points of contention still being India's government procurement market and tariff talks. The EU is India's biggest trading partner, with bilateral trade worth $137.5 billion during the 2023/24 fiscal year. Both nations plan to complete the FTA by the end of 2025, prioritizing diversifying key value chains and deepening their strategic partnership.

 

Source: Economic Times, TRT World, World Economic Forum.