India, EU Continue Talks on Steel, Auto, Carbon Tax for 2025 FTA

India and the European Union are continuing negotiations on a proposed free trade agreement (FTA), with critical discussions focusing on sensitive sectors such as steel, automobiles, and the EU's carbon border adjustment mechanism (CBAM). Both sides have agreed to prioritize resolving issues around tariff and non-tariff barriers and to establish transparent and predictable regulatory frameworks to enhance bilateral trade. During Commerce and Industry Minister Piyush Goyal's recent visit to Brussels, talks were described as productive, with efforts to finalize non-sensitive industrial tariff lines and address India's call for preferential treatment for labour-intensive sectors like textiles and leather. However, disagreements remain over the EU's regulations, including CBAM and the deforestation regulation, which India argues could impose significant tariffs and impact exports such as coffee and paperboard. The two parties reaffirmed their commitment to conclude the FTA by the end of 2025, reflecting a shared goal to build a balanced, future-oriented partnership that supports trade growth and economic security. EU officials highlighted the political trust underpinning the talks and expressed dedication to finding fair solutions that benefit both economies.