Food and agriculture issues recently joined the agenda of an EU delegation in New Delhi, hinting that trade talks between the EU and India are moving forward quickly. Agriculture Commissioner Christophe Hansen and Trade Commissioner Maroš Šefčovič are in India to advocate for EU farmers.
Their discussions will continue until tomorrow, focusing on a trade agreement that includes security and foreign policy topics. The last-minute addition of agriculture to the talks suggests they’re nearing a conclusion, according to insiders in Brussels.
An EU official stated discussions will cover market access for agri-food products and negotiations on the EU-India Geographical Indications (GIs) agreement. Topics like sanitary standards, public procurement, and non-tariff barriers are also expected to arise. Key issues like wine, dairy products, and sustainability will be on the table as well.
A former EU trade negotiator remarked, “This feels like the beginning of the end,” indicating that this stage usually happens when critical numbers need political agreement. India is likely to ask the EU for concessions on agriculture, a point of contention in its negotiations with the U.S. as well.
Anunita Chandrasekar from the Centre for European Reform explains that India is cautious about foreign competition since its agriculture relies heavily on small, subsistence farms. This concern was highlighted during EU Commission President Ursula von der Leyen’s visit to New Delhi in February, where sealing a trade deal by year-end was emphasized.
The backdrop of these talks includes rising global trade tensions. The U.S. has applied stringent tariffs, nudging India and the EU closer, even as America pressures Europe to impose sanctions on India for purchasing Russian oil.
One contentious point is the EU’s Carbon Border Adjustment Mechanism (CBAM), which India views as a case of “green protectionism.” Chandrasekar points out that it could act as a tariff on developing economies like India, particularly affecting sectors such as steel and aluminum. In fact, recent studies show that carbon-intensive industries make up 25% of India’s exports, leading to fears of substantial economic impact from such tariffs.
Some experts believe a solution could be found by taking cues from the EU-Mercosur agreement, which has a “rebalancing” clause that allows for renegotiation if trade barriers are introduced.
As the discussions unfold, negotiators are fine-tuning their proposals. The specifics and compromises may not surface until the final round of talks.
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EU Policy,Maroš Šefčovič,trade,Christophe Hansen,European Commission,India
