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Commerce Minister Piyush Goyal emphasized the need for stronger political support to expedite the conclusion of the proposed foreign trade agreement (FTA) between India and the European Union during discussions with French Minister Sophie Primas. The meeting, which focused on trade, investment, and ongoing negotiations for the FTA, Investment Protection Agreement, and Agreement on Geographical Indications, marked the first engagement between the ministers under Prime Minister Modi’s third term and the new French government led by President Macron.
Foreign investors are increasingly turning away from France, favoring the UK amid ongoing political uncertainty. President Macron is making efforts to delay the EU"s trade deal with South America, known as the Mercosur pact, which faces opposition from French farmers and government officials who warn it could harm European unity.
China has instructed its automakers to pause significant investments in European countries that support new tariffs on Chinese electric vehicles, which can reach up to 45.3%. This directive follows a divided EU vote, with ten countries backing the tariffs, while others, including Germany, opposed them. The move aims to leverage negotiations with the EU and mitigate potential declines in EV exports, which are crucial for the Chinese market.
French farmers plan to protest starting November 15, 2024, against the EU-Mercosur trade deal, which they oppose despite the French government's public stance. As the European Commission seeks to finalize the agreement, it is reportedly developing a compensation fund to address farmers' concerns and mitigate resistance from France.
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