India Seeks Clarity on EU Carbon Tax and Steel Regulation in FTA Talks
India and the EU made substantive progress in their FTA negotiations during talks in New Delhi from November 3–7, 2025. Both sides narrowed gaps and agreed to accelerate efforts toward a balanced agreement. India emphasized the need for clarity and predictability in the EU's Carbon Border Adjustment Mechanism and proposed steel regulations.
A senior EU negotiating team visited New Delhi from November 3rd to 7th, 2025, for discussions on the proposed India-EU Free Trade Agreement. The talks covered key areas such as goods, services, investment, sustainable development, rules of origin, and technical barriers to trade. India’s Commerce Secretary Rajesh Agrawal held detailed meetings with Sabine Weyand, Director-General for Trade at the European Commission, to review progress and address outstanding issues. Both sides noted significant progress, narrowed down divergences, and reached common understanding on several issues. India reiterated its commitment to a fair, balanced, and development-oriented outcome, while urging the EU for greater clarity and predictability in the implementation of the Carbon Border Adjustment Mechanism and proposed new steel regulations. The importance of continued technical-level engagement was highlighted to bridge remaining gaps and work towards concluding the FTA negotiations at the earliest. Over 65% of the chapters have been finalized, and both sides remain committed to achieving a mutually beneficial trade agreement by year-end. India seeks increased market access for labour-intensive goods, while the EU aims to boost exports of automobiles and liquor to India.
