Synopsis : India and the European Union remain at odds over stringent food safety standards, especially regarding pesticide residues and aflatoxins, impacting agricultural exports. Despite minor progress, the EU reports that "intense work" is still required to resolve key issues in the SPS and Trade in Goods chapters.
India-EU Trade Deal Hits Roadblock Over Food Safety Standards
Despite 12 rounds of negotiations, India and the European Union (EU) continue to grapple with differences over Sanitary and Phytosanitary Measures (SPS)—rules that regulate food and animal safety. These disagreements have slowed the growth of India’s agri-food exports to the EU, which increased modestly from $3.02 billion in FY19 to $4.54 billion in FY25.
The latest EU status report, released Thursday, acknowledges some progress in technical areas such as risk assessment and regionalisation. However, it also stresses that "further intense work" is needed on pending matters like harmonisation, dispute resolution, and listing of establishments.
India’s concerns primarily focus on the EU’s stricter-than-WHO regulations, particularly those concerning pesticide residue levels and aflatoxins. Indian exporters often face rejections due to these high standards. For example, while WHO Codex standards allow 15 PPB of aflatoxins in peanuts, the EU caps it at 4 µg/kg for human consumption—less than a third of the permissible limit. This discrepancy affects exports of key Indian commodities such as chillies, rice, tea, and spices.
Additionally, the Rules of Origin chapter remains unresolved. Discussions have covered trade procedures and product-specific rules across sectors including agriculture, chemicals, machinery, and medical devices. Both sides are also negotiating tariff access and exploring compromises on contentious points in the Trade in Goods chapter.
The EU is one of India’s largest export markets for premium agricultural goods, making these trade talks critical. However, progress will require not just technical alignment but also political willingness from both parties to harmonise standards without compromising safety or market access.
Disclaimer : This article is based on publicly available data and the official EU report on India-EU trade negotiations. The views expressed do not reflect any official stance or represent legal or trade advisory.
