THE EUROPEAN UNION is seeking lower tariffs on items of interest to Brussels, including whiskey, wine and cars, among others. This will be a key discussion item for the 27-member grouping in securing a Free Trade Agreement (FTA) with India.According to officials in the EU, trade and technology will be among the key issues during this first-ever visit to India of the EU’s College of Commissioners led by European Commission President Ursula van der Leyen beginning February 27-28.“There are a number of issues that are outstanding [for an FTA], including tariffs. India’s market is relatively closed, especially on key products of commercial interest to the European Union and to our member states’ industries. These include cars, as well as wines and spirits,” the official said.The EU official said the European Union is seeking to drive a hard bargain to ensure India and the EU have a commercially meaningful FTA that covers tariffs, non-tariff barriers, and procurement commitments. “And these are just three examples of areas where we still expect India to come up with stronger commitments,” the official said.The EU’s demand for lower tariffs comes after India and the EU have concluded nine rounds of talks, with the tenth round of negotiations set to take place from March 10-14 in Brussels. Once concluded, the EU deal will be the largest FTA for India, improving market access for labour-intensive sectors such as textiles, leather, and marine products to India’s second-largest export market after the US.India, on its part, is pushing for concessions for its MSMEs in the deal amid concerns that a carbon border adjustment mechanism (CBAM) could lead to high duties on Indian steel and aluminium products. The EU recently granted a concession to Mercosur under the trade agreement that the 27-nation bloc signed last year.India’s textile exports, in particular, are at a disadvantage compared with countries like Bangladesh and Vietnam, as Indian apparel and textile exports face an additional 10 per cent duty due to the absence of a trade deal. An EU FTA would bring India’s textile exports on par with those of its competitors.Story continues below this adMoreover, India is also seeking better integration with the EU services sector and aiming to create more opportunities for skilled labour mobility. Apart from being one of India’s biggest goods export markets, the EU is also one of its largest markets for services exports.The EU and Indian leaders had, in May 2021, agreed to resume negotiations for a “balanced, ambitious, comprehensive and mutually beneficial” trade agreement that was abandoned nearly a decade ago, and to launch separate negotiations on an investment protection agreement and an agreement on geographical indications (GIs). Leaders also agreed to link trade negotiations to finding “solutions to long-standing market access issues”.High standards and expectationsThe EU official also said that Europe has high expectations from the deal and that meeting somewhere in the middle is a “challenge.” “We have an advantage in terms of the experience we have in negotiating these deals. We have a template. Therefore, we also have high expectations. We have standards, and I think part of the challenge for us is perhaps to meet somewhere in the middle, where our high ambition and high standard are indeed reciprocated and also reflective of Indian interests,” the senior official said.“The EU has the largest network of trade agreements in the world. Currently, 76 countries are covered by trade agreements. India actually has very few trade agreements, and they are currently negotiating with the European Union, as well as with the United Kingdom,” the official said.Story continues below this adEnforcement of sanctions, ChinaThe official further said that the EU delegation is expected to raise issues related to sanctions imposed on Russia, adding that de-risking from China is one of the key agenda items in the India-EU relationship. “One specific point that I expect the President to raise in the context of Russia’s aggression is not just our support for Ukraine, but also the sanctions that we maintain on Russia and the cooperation we have with India, which we want to continue and intensify around the enforcement of those sanctions,” the EU official said.