Germany’s Habeck Pushes for Exclusion of Agriculture in EU-India Trade Talks to Accelerate Deal
Source: DairyNews.today
German Economy Minister Robert Habeck has proposed excluding agriculture from the ongoing free trade agreement (FTA) negotiations between the European Union and India, in an effort to expedite the long-stalled discussions.
During a visit to India with a high-level German delegation, Habeck identified agriculture, and particularly the dairy sector, as a major sticking point in the talks and suggested prioritizing industry-focused agreements to move the process forward.
The EU and India have been in protracted negotiations for a trade deal, with access to India’s dairy sector emerging as a particularly contentious issue. India’s trade ministry previously emphasized that a trade deal would be unattainable if the EU insisted on dairy market access, underscoring the sensitivity of the sector within India’s domestic economy.
Habeck noted that setting aside agriculture could allow for faster progress in securing industrial trade agreements, a position he described as practical given the complexity of aligning the agricultural interests of both parties. "Farming remains the most challenging sector in these discussions," Habeck stated, indicating his support for a phased approach to the FTA that could potentially bring industry agreements into effect sooner.
This proposal reflects a strategic shift aimed at strengthening EU-India trade relations, focusing on sectors where mutual benefits can be achieved more readily, while deferring complex agricultural discussions for future negotiations.
The EU and India have been in protracted negotiations for a trade deal, with access to India’s dairy sector emerging as a particularly contentious issue. India’s trade ministry previously emphasized that a trade deal would be unattainable if the EU insisted on dairy market access, underscoring the sensitivity of the sector within India’s domestic economy.
Habeck noted that setting aside agriculture could allow for faster progress in securing industrial trade agreements, a position he described as practical given the complexity of aligning the agricultural interests of both parties. "Farming remains the most challenging sector in these discussions," Habeck stated, indicating his support for a phased approach to the FTA that could potentially bring industry agreements into effect sooner.
This proposal reflects a strategic shift aimed at strengthening EU-India trade relations, focusing on sectors where mutual benefits can be achieved more readily, while deferring complex agricultural discussions for future negotiations.
