India, EU close in on FTA as negotiations conclude, Pg1

Key Highlights:

• EU-India Free Trade Agreement (FTA) negotiations concluded, set for announcement on Tuesday.
• The announcement will occur during the EU-India summit, attended by Prime Minister Narendra Modi, EU Commission President Ursula von der Leyen, and European Council President Antonio Costa.
• The FTA conclusion marks the end of a two-decades-old process, with talks first launched in 2007.
• Bilateral trade between India and the EU has already crossed $136 billion.

Detailed Insights:

• The FTA talks faced challenges over market access for European agricultural and dairy items, environmental regulations, investment, and immigration.
• After a freeze between 2014 and 2022, the talks relaunched with pragmatic goals, setting aside sectors where common ground couldn't be found.
• Besides the FTA, agreements on security and defence partnership, energy cooperation, and a mobility agreement are expected.
• The EU leaders witnessed the 77th Republic Day parade, showcasing India’s military hardware, including those involved in Operation Sindoor.
• The EU acts as a single customs bloc, making this FTA one of the biggest bilateral deals globally.
• Much of the hardware at the parade was Russian-made, despite EU sanctions since Russia's invasion of Ukraine in February 2022.
• After the announcement, the FTA will undergo legal review and translation before ratification by the European Parliament.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Customs Bloc: A group of countries that have eliminated customs barriers among themselves and have a common external tariff.
• Ratification: The formal approval of a treaty or agreement by a country.