While progress has been made on many fronts, with negotiations on 11 of 27 chapters already concluded, several contentious areas remain. The article specifically highlights agriculture and dairy as key sticking points. This tension underscores the complex nature of dairy economics, where trade agreements must balance the need for open markets with the protection of local industries. The negotiations are a critical test of how both sides will manage these competing interests to forge a mutually beneficial deal.

The report also touches on another major point of contention: the EU’s Carbon Border Adjustment Mechanism (CBAM), which is set to impact sectors like steel and cement starting in 2026. India is reportedly seeking concessions on this mechanism, similar to those given to the US. This issue is a clear example of how environmental policy and trade are becoming increasingly intertwined. For the international food supply chain, it demonstrates that future trade pacts will be influenced not just by tariffs, but by a new generation of sustainability-focused regulations.

The editorial outlines the significant economic benefits already present in the relationship, including $137.41 billion in goods trade and $51.45 billion in services trade in 2023-24. It also notes substantial foreign direct investment from the EU. The article suggests that a comprehensive pact would further unlock this potential, making India an even more attractive destination for foreign capital and strengthening its position in the global economy. This is a crucial piece of data journalism for anyone invested in the future of agribusiness.