India, EU trying to narrow differences on trade pact, difficult issues on table: Official

New Delhi: The negotiations between India and the 27-nation bloc EU have entered the “most difficult” stage, and both sides are engaged to bridge the differences and close the talks soon, Commerce Secretary Rajesh Agrawal said on Monday.

He said that the EU carbon border adjustment mechanism (CBAM) is on the discussion table. “We are in the most difficult stage, most difficult issues are on the table...we are trying to ease that out wherever we are finding a fine balance. There is a set of issues on the table...CBAM is definitely on the table,” he told reporters here.

The 16th round of negotiations between the two sides concluded earlier this month (3–9 December) here.

Key chapters such as goods, services, investment, rules of origin, and technical barriers to trade were discussed. “We are narrowing down the differences...we are working tirelessly to close the talks,” Agrawal said,

When asked if both sides are considering dropping a few chapters to close the deal early, the secretary said that the decision will be taken at the last moment.

“I do not think we are dropping (any chapter) as of now. Whatever is on the table is on the table. But in case, in the interest of agreement at some point in time, we feel that there are certain issues or areas that need to be dropped, may be (dropped). That call will be taken at the level of either chief negotiators or my ministers or my level, but that is not the stage we are at,” he said.

On the December deadline for conclusion of the negotiations, the secretary said there are internal time lines, and it does not mean things will stop if it is not met.