Mon Jan 19 07:32:46 UTC 2026: ### India Urges EU to Address Non-Tariff Barriers as FTA Nears Completion

The Story:
As the India-European Union (EU) Free Trade Agreement (FTA) approaches its anticipated conclusion on January 27, 2026, think tank Global Trade Research Initiative (GTRI) is urging India to press the EU to eliminate non-tariff barriers that hinder Indian exports, especially in the agricultural and pharmaceutical sectors. The FTA negotiations, which began in 2007, aim to boost trade relations, but GTRI emphasizes that the removal of tariffs alone will not guarantee proportional export gains for India. European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen are scheduled to visit India from January 25-27, 2026, as chief guests at the 77th Republic Day celebrations.

Key Points:
* The India-EU FTA negotiations are expected to conclude on January 27, 2026.
* GTRI is calling for the removal of non-tariff barriers, including regulatory delays in pharmaceutical approvals and stringent sanitary and phytosanitary rules affecting agricultural exports.
* Concerns include the EU’s Carbon Border Adjustment Mechanism (CBAM), which could disproportionately impact Indian MSMEs.
* India seeks EU recognition as a ‘data-secure’ country under GDPR to facilitate smoother data transfers.
* The EU seeks access to India’s approximately $600 billion government procurement market.
* India and the EU are negotiating separate Geographical Indicators (GI) and investment protection pacts.

Critical Analysis:
The timing of the push for non-tariff barrier removal just before the EU delegation’s visit suggests a strategic move by India to leverage the impending FTA conclusion. Poland seeking new trade partners and the UAE President’s visit to India hint at a broader Indian strategy to diversify trade relationships and strengthen its position on the global stage.

Key Takeaways:

  • Non-tariff barriers are a significant obstacle to realizing the full potential of the India-EU FTA.
  • India is actively seeking concessions on issues like CBAM and data security to protect its MSMEs and digital economy.
  • The FTA’s success hinges on addressing these regulatory hurdles alongside tariff reductions.
  • India is simultaneously engaging with multiple partners to expand its trade network.
  • Investment protection remains a point of contention, reflecting India’s caution based on past disputes.

Impact Analysis:

  • The successful negotiation and implementation of the India-EU FTA, with addressed non-tariff barriers, is expected to significantly boost trade volumes between the two regions, leading to economic growth and job creation.
  • Failure to resolve these issues could lead to a structurally unbalanced agreement, hindering Indian exports and undermining the overall benefits of the FTA.
  • The outcome of the negotiations on CBAM and data security will set a precedent for future trade agreements and influence global trade policies.

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