India-EU trade pact likely in coming weeks: French minister

The proposed free trade agreement (FTA) between India and the European Union (EU) is likely to be finalised soon, said a French minister. The move aims to enhance trade relations between Europe and India, which are currently below potential. French Minister of Foreign Trade, Laurent Saint-Martin, hopes for a conclusion in the coming weeks or months. "India is one of our priorities and I know that the European Commission really wants to fast-track the talks for the pact," Martin said.

Saint-Martin emphasised balancing trade facilitation with protecting sensitive sectors like agriculture and environmental norms. "We have to take care about our agriculture and some norms in terms of environment and sanitary norms," he stated, stressing mutual understanding of concerns.

The minister described the FTA as strategic for facilitating trade, highlighting the need to lower barriers while protecting certain sectors. This approach is crucial for boosting exports, investments, and co-investments between the two regions.

The European Union, comprising 27 nations including France and Germany, views the FTA as critical for strengthening economic ties with India. Saint-Martin expressed optimism about reaching an agreement soon, stating, "I am pretty optimistic on the fact that we can have an agreement in the coming weeks, coming months, because we have to showcase the world that we do believe in trade, in a freer trade, and not in a trade war."

The minister underscored the importance of such trade agreements in fostering economic and cultural ties amid global trade uncertainties. "It means a lot for us, because we are living in very troubled times in terms of global trade," he noted, emphasising the cultural dimension of the bilateral relationship.

The defence sector has been highlighted as a model for successful bilateral cooperation, with Saint-Martin suggesting it as an example for other sectors. "So let's make this defence sector a role model, an example for other sectors," the minister said. 

The push to finalize the FTA with India is also backed by a delegation led by Indian Commerce and Industry Minister Piyush Goyal. The delegation includes over 50 business representatives, reflecting the high stakes and mutual interest in concluding the agreement swiftly.

As talks progress, the focus remains on striking a balance between opening markets and safeguarding key industries. Both parties are committed to finding a consensus that honors their respective priorities while promoting greater economic integration.