EU likely to complete FTA ratification by November, Pg14

Key Highlights:

• The EU-India FTA ratification is expected to be completed by November.
• The legal scrubbing of the EU-India FTA is expected to be completed by July.
• The India-UK CETA is expected to be operational by the end of April.
• The India-EU FTA was finalized on January 27 this year.
• India and the UK signed CETA on July 24, 2025.

Detailed Insights:

• The EU-India FTA is designed as an "exclusive" agreement, covering only trade matters to streamline the approval process.
• As an exclusive agreement, the EU-India FTA requires approval only by the European Parliament and the European Council, not all 27 member states' parliaments.
• Talks between India and the UK are ongoing to resolve issues related to the entry into force of the Comprehensive Economic and Trade Agreement (CETA).
• Once the legal text of the EU-India FTA is ready, it must be approved by the European Council before ratification can occur.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Comprehensive Economic and Trade Agreement (CETA): A broad agreement covering trade, investment, and other economic cooperation areas.
• Ratification: The formal approval process required for an international agreement to become legally binding.