The European Union has too many regulations and meeting them all was “nearly impossible”, according to India’s commerce minister.
New Delhi has highlighted over 73 EU regulations, particularly the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), which he says are a hindrance to trade.
EU-India negotiators aim to conclude a free-trade agreement before the end of the year, but both parties have shown little willingness to compromise so far.
EU regulations India will have to fulfil “as part of this agreement are nearly impossible to meet”, said Piyush Goyal, Indian minister of commerce and industry.
These hurdles to trade are set to make European infrastructure and goods, including cars and planes, more expensive, and drive up the cost of living, Goyal said.
Talking at a summit in Berlin on October 24, the minister said European businesses risk becoming isolated, “living in a cocoon, while other trading partners will be trading around the world with each other”.
The EU and India traded good worth €120 billion in 2023.
Goyal met with European Commissioner for Trade Maroš Šefčovič in Brussels yesterday.
Meanwhile, in New Delhi, a delegation from the European Parliament’s committee of international trade described negotiations as “challenging” and “intensive”, noting that late-stage disagreements are to be expected.
“India’s concerns about EU regulation reflect differences in scale and development, not opposition to partnership,” committee member and Renew Europe MEP Barry Cowen told Brussels Signal.
He stressed the need for temporary safeguards for sensitive industries such as agriculture.
“Both sides have defended their standards and interests robustly”, he said.
