Negotiators from India and the European Union (EU) are yet to find common ground on the issue of technical regulations and standards that act as trade or market access barriers, an update on the latest round of talks that concluded in December showed.

During the talks between 28 November and 2 December, negotiators discussed technical regulations, standards and conformity assessment articles, according to the Report of the Third Round of Negotiations.“No significant progress was made during this round due to substantial differences that exist between the EU and Indian systems, in particular as regards the Supplier Declaration of Conformity (SDoC)," according to the report.

Experts said the EU’s demands as per the draft chapter on Technical Barriers to Trade (TBT) exceed India’s commitment at the World Trade Organization. This may lead to significant compliance costs for Indian exporters in sectors like telecommunication, electrical equipment and chemicals to access the EU market, and vice versa.

Besides, the EU proposal does not provide for mutual recognition of standards and conformity assessment, which means Indian products may continue to face market access barriers even after the agreement.

An EU official said the added value of the trade agreements that the EU negotiates is linked to the inclusion of WTO+ elements and that this also applies to TBT. The key EU objective in its trade relations with India is to work towards a sound, transparent, open, non-discriminatory and predictable regulatory and business environment for European companies trading with or investing in India, the official said on condition of anonymity. “The aim is to contribute to unlocking the untapped potential of two-way trade and investment between the EU and India," said the official.

The fourth round of EU-India FTA negotiations will be held in Brussels from 13 to 17 March 2023. TBT plays a crucial role in the electrical equipment and chemicals sector, which forms about 30% of India’s export to the EU.

Anuradha R.V., partner at Clarus Law Associates said that India would benefit if the EU recognizes India’s standards in its market, making way for more Indian exports that currently face technical barriers. However, she pointed out that the proposed chapter by the EU does not cover this aspect. “Technical regulations often act as impediments to market access. To address this, the real benefit that can be expected from the TBT chapter in an FTA is when it provides for mutual recognition of standards and conformity assessment. The EU draft chapter does not provide for this and perhaps this needs further consideration by Indian industry to facilitate true market access into the EU markets," said Anuradha.

TBT refers to mandatory technical regulations and voluntary standards that define specific characteristics that a product should have, such as its size, shape, design, labelling/marking/packaging, functionality or performance. The Technical Barriers to Trade (TBT) Agreement aims to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory and do not create unnecessary obstacles to trade.

Source: LiveMint 

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