During a joint press conference with Italian Deputy Prime Minister Antonio Tajani, Commerce and Industry Minister Piyush Goyal recognized the challenges in finalizing a long-awaited trade agreement. He stated, “Had there been no sensitive matters, we could have finalized that agreement 18 years ago. There are indeed issues, and we are actively working to address them.”
Commerce and Industry Minister Piyush Goyal acknowledged on Friday that several unresolved issues are hindering the finalization of the proposed free trade agreement between India and the European Union (EU), but he emphasized that negotiations are progressing positively.
“If there were no sensitive matters, we could have finalized this agreement 18 years ago. Clearly, there are challenges, and we are actively working to address them,” Goyal stated during a joint press conference with Italian Deputy Prime Minister Antonio Tajani.
Italy is one of the 27 member states of the EU, which resumed trade discussions with India in June 2022 after an eight-year pause. Previous negotiations had stalled in 2013 due to disagreements regarding market access.
The 10th round of talks occurred in Brussels last month, with the next round scheduled to take place in India in May.
On February 28, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reiterated their commitment to finalizing the long-anticipated agreement within this year.
Tajani, who also serves as Italy’s Minister for Foreign Affairs and International Cooperation, remarked that “we are making significant efforts in Brussels to achieve this important objective” of signing the agreement soon.
He highlighted the substantial trade and investment opportunities available for businesses on both sides and noted that Italian companies are prepared to engage in joint ventures with Indian firms in Africa.
“The space sector represents the future. It is a clean industry,” he stated while discussing potential areas of collaboration.
Regarding the India-Middle East-Europe Economic Corridor (IMEC), the Italian minister mentioned that it serves as a connection between India and Italy via the Gulf, which will enhance trade relations.
In the meantime, Goyal met with Tajani to explore ways to strengthen bilateral trade and investment partnerships.
The trade volume between India and Italy is projected to reach approximately USD 15 billion in 2023-2024, while Foreign Direct Investment from Italy into India is estimated at around USD 4 billion.
The leaders also reviewed the status of the EU-India Free Trade Agreement (FTA) negotiations, underscoring the necessity of prioritizing trade matters to facilitate discussions and produce a commercially viable package aimed at establishing resilient value chains that can offer stability to businesses in the face of emerging risks.
Key sectors identified for collaboration between the two nations include pharmaceuticals, textiles, technological partnerships, gems and jewelry, shipbuilding, energy transition, as well as agri-tech and food processing.
According to a statement from the commerce ministry, Italy acknowledged the importance of engaging with India as a strategic ally to diversify its trade connections. The challenges faced by exporters and investors due to trade barriers were also addressed, with both parties agreeing to tackle these issues through ongoing dialogue.
It was decided that the next session of the Joint Commission for Economic Cooperation would take place in Italy at a mutually agreed time, accompanied by a high-level business delegation to further bilateral trade, improve market access, and encourage investments.
Goyal noted that potential areas for enhanced cooperation include fashion, tourism, luxury goods, pharmaceuticals, agri-tech, manufacturing, and electric vehicles.
