FTA: India, EU yet to work out issues related to steel, auto, CBAM: Commerce Ministry
Union Minister of Commerce and Industry Piyush Goyal meets EU Commissioner for Trade and Economic Security Maros Sefcovic
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India and the EU are yet to settle issues related to steel duties, market access for automobiles and the bloc’s carbon tax legislation and other regulations under the the proposed India-EU free trade agreement (FTA), said the Commerce Ministry.
However, substantial progress had been made in the talks and in “more and more issues” the two sides are moving towards convergence, said Commerce & Industry Minister Piyush Goyal on Wednesday.
Goyal visited Brussels on October 26-28 to discuss outstanding issues related to the India-EU FTA with European Commissioner for Trade and Economic Security, Maroš Šefčovič. He said substantial progress had been made in the talks.
“We have agreed to close 10 out of the 20 chapters. Another four or five chapters have in principle been broadly decided. And on more and more issues, we are leading towards convergence..,” said the Minister at a media briefing on Wednesday.
A EU technical team, led by Director General for Trade, will visit India next week with the objective of achieving a constructive conclusion based on the potential solutions identified over the past two days, a Commerce Ministry statement noted.
India recognises the importance of ensuring that the FTA remains balanced in addressing both tariff and non-tariff barriers and creating transparent and predictable regulatory frameworks that accelerate trade for both partners in the coming years, it said.
duty-free quotas
New Delhi is worried about a EU proposal to cut down on duty-free quotas in steel imports and increase tariffs on over-quota shipments. It also wants the EU to give some assurance that the benefits that will flow from the India-EU FTA to the Indian industry should not be affected by the Carbon Border Access Mechanism (CBAM). Under CBAM, Indian exports of steel, aluminium and cement to the EU could face tariffs of 20-35 per cent, per estimates.
“They also agreed that issues related to steel, auto, CBAM and other EU regulations still require further discussion, as these issues have higher sensitivities,” said the Ministry, referring to Goyal’s meetings with EU officials.
The two sides are working towards moving towards substantial conclusion of the FTA pact by the year-end, but Goyal said India never negotiated with strict deadlines in mind.
India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making it the largest trading partner for goods, the statement noted.
The EU market accounts for about 17 per cent of India’s total exports, and the bloc’s exports to India constitute 9 per cent of its total overseas shipments.
Published on October 29, 2025
