Optimistic of India-EU trade pact in coming weeks or months: French minister

Paris | France on Tuesday expressed hope that the proposed free trade agreement (FTA) between India and the European Union (EU) would be concluded in coming weeks or months.

French minister of foreign trade Laurent Saint-Martin said it is important to show the world that the two sides believe in free trade and not trade wars.

He also said that the defence sector is one of the major success stories in India-France bilateral ties.

"So let's make this defence sector a role model, an example for other sectors," the minister said.

"I am pretty optimistic on the fact that we can have an agreement in the coming weeks, coming months, because we have to showcase the world that we do believe in trade, in a freer trade, and not in a trade war," Martin told reporters here after meeting Commerce and Industry Minister Piyush Goyal.

The European Union is a grouping of 27 nations, including France and Germany.

Goyal is on an official visit here. He is leading an over 50-member business delegation.

He added that the meeting of businesses of both sides is key against the backdrop of global uncertainties at trade front.

"It (the meeting) means a lot for us, because we are living in a very troubled times in terms of global trade and what we do believe in India and France is that we have to strengthen our ties," he said adding both India and France have to foster economic and cultural ties.

"India is one of our priorities and I know that the European Commission really wants to fast-track the talks for the pact," Martin said.

He added that France wants to lower tariffs and non-tariff barriers.

"On the other hand, we have to take care about, for example, our agriculture, and about some norms that we have in terms of environment, also in terms of sanitary norms, and a deal at the end is a consensus," he said adding both sides have to understand each other's concerns and sensitivities.

Further, he said the trade relation between Europe and India has not reached its potential and both sides need to boost exports, investments and co-investments.

"The FTA is a way of facilitation of trade. This is why we need to lower barriers, but on the other way, you have to protect sometimes, some sectors, and I'm talking about agriculture," he added.