Goyal Stresses Mutual Sensitivities for India-EU Trade Talks

Commerce and Industry Minister Piyush Goyal highlighted the need to understand and respect mutual sensitivities to expedite India-European Union free trade agreement (FTA) negotiations, warning that no deal would be possible if the EU insists on opening up the dairy sector.

Speaking at the Asia-Pacific Conference of German Business, Goyal argued that "extraneous" matters such as labour and climate change should be addressed in international forums. He emphasised the importance of recognising the differing priorities of the 27 EU countries and India's 27 states, noting the significant disparity in per capita income.

The minister called for a focus on trade, investment, and strategic partnerships, stating that negotiations must involve political decision-making, rather than being left solely to bureaucrats. Citing past FTAs with the UAE, Australia, and EFTA, he stressed that respecting each other's sensitivities is essential.

Goyal made it clear that if the EU demands the opening of the dairy sector, "there is no FTA," pointing out that Australia’s FTA with India did not include dairy out of respect for India’s concerns.