EU Ambassador Calls for Earnest Engagement as 14th Round of India-EU FTA Talks Commences

EU Ambassador to India Hervé Delphin has emphasized the need for resolving critical outstanding issues as India and the European Union begin their 14th round of Free Trade Agreement negotiations in Brussels, describing the proposed trade pact as a potential "game changer" amid global economic uncertainties.

Key Challenges Remain Unresolved

Speaking at the second Annual General Meeting of the Federation of European Business in India (FEBI) on October 3, Ambassador Delphin acknowledged that "the negotiations are challenging and important issues remain to be solved". He specifically noted that the 13th round of negotiations held in New Delhi from September 8-12, 2025, "did not result in the sort of breakthrough which was expected".

The previous round saw direct involvement from European Commission Trade Commissioner Maroš Šefčovič and Agriculture Commissioner Christophe Hansen, but failed to achieve significant progress in sensitive areas including automobiles and agricultural products. According to official EU reports, no additional chapters could be closed during the 13th round, with key areas such as market access and rules of origin remaining unresolved.

Official Commitment to Year-End Deadline

Ambassador Delphin confirmed that "EU President Ursula von der Leyen and PM Modi have set the objective to conclude the FTA by the end of this year". Despite the challenges, he stated that "the EU was and is still ready to conclude on a meaningful package" and expressed optimism for "further negotiations towards a mutually beneficial deal".

The ambassador emphasized the strategic importance of the agreement, stating: "While some countries are raising tariffs or otherwise closing their markets, we should use the FTA to diversify trade, hedge against uncertainties and strengthen our supply chains". This reference to global trade tensions underscores the EU's view of the India partnership as crucial for economic stability.

Substantial Economic Foundation

Highlighting the existing economic relationship, Delphin revealed that approximately 6,000 European companies currently operate in India, creating more than three million direct jobs and generating a total turnover of EUR 186 billion in 2024, equivalent to around 5% of the Indian economy. These companies exported goods worth EUR 23.5 billion, accounting for approximately 6% of total Indian exports, and contributed over EUR 7 billion in taxes.

"The EU is India's top trading partner, with bilateral trade in goods of EUR 120 billion, ahead of the US and China. Adding services, our bilateral trade has reached EUR 180 billion," Delphin stated. However, he emphasized there remains "huge untapped potential" considering both economies rank among the world's largest.

New Strategic Framework Unveiled

The ambassador also unveiled the European Commission's new EU-India Strategic Agenda, released jointly with High Representative Kaja Kallas. This comprehensive policy framework encompasses five pillars: prosperity and sustainability, technology and innovation, security and defence, connectivity and global issues, and partnership enablers.

Key proposals include establishing innovation hubs, creating Blue Valleys as dedicated platforms for private sector engagement, developing a Trade and Technology Council 2.0 focusing on critical supply chains like semiconductors and clean technology, and establishing a gateway office to facilitate mobility of skilled ICT workers.

Investment Protection Agreement Progress

Alongside the FTA negotiations, both sides are pursuing an Investment Protection Agreement designed to create "a predictable, secure and transparent environment for EU and Indian investors". Delphin noted that while "certain differences must still be resolved, both EU and India agree on key principles: that the right of states to regulate must be explicitly safeguarded and that there must be clear guidance for tribunals".

Upcoming Ministerial Review

The five-day negotiating round in Brussels will be followed by a high-level meeting between Indian Commerce Minister Piyush Goyal and EU Trade Commissioner Maroš Šefčovič in South Africa on the sidelines of the G20 trade commissioners' summit. This ministerial engagement is expected to provide political guidance for resolving outstanding technical issues and maintaining momentum toward the December deadline.

The negotiations cover 23 policy areas, with 11 chapters already concluded, including customs and trade facilitation, digital trade, and competition policies. The remaining discussions focus primarily on market access, rules of origin, and sensitive sectors where both sides seek to balance their respective economic interests while working toward a comprehensive agreement.