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EconomyThe Hindu8 May 2026
Compliance Regulations Could Derail India-EU FTA Benefits: EU Ambassador
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📌 Summary:
- EU Ambassador Hervé Delphin: compliance regulations could derail benefits of India-EU FTA — termed "mother of all deals"
- Key concern: EU's stringent compliance regulations — Carbon Border Adjustment Mechanism (CBAM), deforestation regulation, supply chain due diligence — may become non-tariff barriers negating trade gains
- FTA is missing a chapter on investment — significant gap for European companies seeking long-term market access
- India-EU FTA negotiations resumed 2022 (after a decade-long hiatus since 2013)
- Strategic context: India-EU FTA would be among the world's largest trade deals by combined GDP
📚 Prelims Fact:
- India-EU FTA negotiations: resumed 2022; EU = India's largest trading partner bloc; CBAM = Carbon Border Adjustment Mechanism (EU's carbon tariff on imports); missing investment chapter = key sticking point
India-EU FTACBAMtrade dealEU Ambassadorcompliance regulations
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