Indo-EU FTA: French foreign minister says regulations a huge issue

Mumbai: As India and the European Union negotiate on a free trade agreement, French Foreign Minister Catherine Colonna on Thursday said regulations are a “huge issue” on which consensus needs to be reached.

Colonna, who is on a four-day visit to India, said sealing the FTA between India and the block will take “some time” as it involves complex negotiations.

Speaking at the annual general meeting of the Indo French Chamber of Commerce, the visiting French minister said negotiations on the FTA were relaunched in 2021.

“I believe the EU and all the member states have high ambitions in these negotiations to have a balanced agreement, respectful of shared values in terms of sustainable economic and social development and covering all economic issues. Not only tariffs but also regulations. And you do know that there's a huge issue there,” she said.

She added that the agreement will also cover the protection of intellectual property and investors' rights.

Colonna said trade was “never, never just about” buying for one dollar, selling for two, but it also involves strengthening the bonds that allow us to grow stronger together and help us reach our shared priorities.

"France wants to be India's number one partner to help achieve the ecological, urban and energy transitions, and demonstrate that environmental protection and economic development can go hand in hand," she said, outlining Paris' intentions.

Colonna rued that France's contribution to Indian imports is just 1.1 per cent, and added that there is a scope for increasing the same by penetrating better into the fast moving consumer goods sector given the growing number of urban consumers in India.

All the agencies facilitating the trade like the chamber have an important role to play in ensuring that the economic and trade ties between the two partners grow, she said.

The European chamber of commerce will be opening in a year's time and will give a fillip to the Indo-European trade, she said.

French companies have invested USD 11 billion in foreign direct investment into India till 2021 and employ 4 lakh people, she said.

She also invited Indian companies to invest in France, calling it as a ripe time to do so right now.

The minister also assured "full support" to India's presidency of G-20, and hoped that New Delhi can drive a conversation on climate change.