The ongoing negotiations between India and the EU are primarily centered on critical areas designed to foster greater trade liberalization. Key objectives include the reduction of tariffs across various goods, enhancing access to services markets, and generally facilitating smoother trade flows in strategically important sectors. Such an agreement could significantly alter import and export dynamics, impacting dairy producers and manufacturers on both continents.

While considerable progress has been made, with 5 out of 23 chapters of the comprehensive FTA already completed, significant disagreements continue to persist. Among the most contentious issues at the negotiation table are the duties and regulations concerning specific agricultural products, particularly dairy and wine. The sensitivity around these sectors highlights the complexities of balancing domestic industry protection with the benefits of broader trade liberalization.

The timeline for these crucial negotiations remains tight, with the next round of discussions officially scheduled to commence on July 7. The rapid approach of the year-end deadline suggests an intensified period of diplomatic engagement and bargaining, as both sides strive to bridge their differences and secure a mutually beneficial agreement. The outcomes of these discussions on dairy will directly impact future market access and competition.