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India and the European Union (EU) are preparing for a decisive round of negotiations on a Free Trade Agreement (FTA) , with the 13th round of talks set to begin in New Delhi on September 8, 2025 . These discussions come as both sides aim to finalise the deal by the end of this year, amid growing concerns over global trade disruptions triggered by U.S. tariff policies. Strategic Importance of the Talks The FTA has gained renewed urgency as tariff wars led by the U.S. are reshaping global trade flows. According to officials, both India and the EU see the deal as a mechanism to “de-risk” supply chains and provide stability for businesses across critical sectors. To give political momentum to the negotiations, EU trade commissioner Maros Sefcovic and agriculture commissioner Christophe Hansen are expected to visit New Delhi for discussions with commerce minister Piyush Goyal . Progress Achieved So Far The two sides have already closed 11 out of 23 chapters of the agreement, in...

Understanding Tariffs: A Key Element in Global Trade Tariffs are taxes imposed on imported goods and services by a country’s government. These duties are levied to regulate trade, protect domestic industries, and generate revenue. Tariffs can be classified into two main types: Ad Valorem Tariffs : Levied as a percentage of the value of the goods. Specific Tariffs : Charged as a fixed amount per unit of the imported product. Countries impose tariffs for various reasons, including safeguarding local businesses, reducing dependency on foreign goods, and addressing trade imbalances. However, excessive tariffs can disrupt international trade, leading to economic slowdowns and strained diplomatic relations. Why is the U.S. Increasing Tariffs on Imports? The U.S. has adopted a more protectionist trade policy in recent years, implementing tariffs on imports from various countries, including India. The primary reasons behind these tariffs include: Reducing Trade Deficits : The U.S. ...