Non-trade issues take backseat in FTA talks

Developed countries are softening their stance on pushing non-trade issues such as sustainability and environment in their free trade agreement (FTA) negotiations with India, officials said-a shift that could smoothen ongoing trade talks with partners like the EU and the UK."Gradually those countries are suggesting to start business first and look into the rest of the extraneous issues later," one of the officials told ET.India has always maintained that non-trade issues like sustainability, labour and environment should be addressed at international platforms specifically meant for them.The EU and UK have been insisting on including such issues in the proposed trade agreements. Such demands have now gone quiet, officials said.The EU's Carbon Border Adjustment Mechanism and the Deforestation Regulation is such a barrier for trade.In February, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had agreed to conclude an ambitious India-EU free trade deal this year.