India Trade Deals Update: Commerce secretary shares latest on India’s BTA and FTA talks with US, Canada, and EU

Commerce Secretary Rajesh Agrawal on Thursday provided an update on India’s ongoing trade negotiations, including the India-US bilateral trade agreement (BTA) and the India-EU Free Trade Agreement (FTA).

Speaking to reporters, Agrawal said the first tranche of the India-US BTA is “very near,” but declined to give a specific timeline. “Engagements are going on, and negotiating teams are talking virtually on issues which are still pending. But we can't put a deadline. It's very near. That will happen as long as both sides are ready, they feel it is the right time to announce,” he said.

Agrawal noted that India’s exports to the US are continuing to show a positive trend, despite high tariffs. “Exports were still around $7 billion monthly. We are focusing more on areas where tariffs are lower, or where tariffs exist, the industry has been resilient and holding on to the supply chains,” he added.

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He also highlighted India’s energy imports, saying that while the country continues to buy from traditional suppliers, imports from the US have increased recently.

Energy trade has been a key topic in the India-US trade talks, as India imports over 80 per cent of its energy needs. On trade with Iran, Agrawal said India has very limited trade and is awaiting details before taking any steps.

Regarding India-Canada trade talks, Agrawal said discussions are ongoing to restart negotiations and finalise the Terms of Reference (ToR) for a mutually beneficial trade agreement. He added that India is actively negotiating trade agreements with several countries to expand trade and secure long-term growth opportunities.

On the India-EU FTA, Agrawal said 20 out of 24 chapters have been finalised, with a few issues still under negotiation. “Both parties are virtually engaged on a day-to-day basis, and we are trying to see if we can meet the timeline before our leaders meet,” he said. The India-EU summit is scheduled for January 27.

Agrawal said the negotiations are expected to conclude soon, and the deal should be ready. “We are expecting to conclude the negotiations and have the deal ready,” he added, noting that the timeline is being pushed to coincide with the leaders’ meeting.

Union Commerce Minister Piyush Goyal recently concluded a two-day visit to Brussels to advance FTA talks with the European Commission. During the visit, Goyal held discussions with Commissioner for Trade and Economic Security Maros Sefcovic to provide guidance to negotiating teams and resolve pending issues. The meetings focused on market access for goods, rules of origin, services, and other key areas.

The India-EU FTA negotiations, resumed in 2022 after a nine-year gap, aim to conclude a comprehensive and modern agreement. Both sides have expressed confidence and renewed determination to finalise a mutually beneficial deal.