As trade negotiations between the European Union and India face repeated delays, the bloc might benefit from adopting the more adaptable approach of its former member, the United Kingdom. The UK-India free trade agreement, finalized earlier this year, serves as a model, having secured significant concessions from New Delhi by showing flexibility on sensitive issues.

Under the UK deal, India agreed to dramatically reduce tariffs on British cars and Scotch whisky over the next decade, while the UK removed duties on Indian textiles. This pact is projected to boost bilateral trade by over 50% in the coming years. In contrast, EU-India talks are stalled, with a deadline pushed to January 26, due to several sticking points.

Key obstacles include the EU’s demand for greater access to India’s politically charged agricultural market and its insistence on implementing a carbon border tax. India views the Carbon Border Adjustment Mechanism (CBAM) as a threat to its steel exports and a violation of principles that account for different levels of development. Additionally, recent EU moves to curb rice imports and raise steel tariffs have frustrated Indian negotiators.

Indian officials argue that the UK’s success stemmed from shielding sectors vital to India, like dairy and certain fruits, from competition. In return, India opened its market to other British goods. “The Europeans could learn from the British,” noted one anonymous Indian official, suggesting India could lower tariffs on luxury cars and wine if agriculture is kept off the table.

Experts warn that the EU has more to gain from a deal, as most Indian exports already face minimal tariffs. They urge India to resist environmental rules that could harm its competitiveness. Meanwhile, the EU must balance its own domestic constituencies, including farmers wary of foreign competition, as seen in recent protests over a deal with Mercosur nations.

Despite tensions, there are signs of potential compromise. EU insiders suggest the bloc is considering concessions, such as joint car manufacturing initiatives and exclusions for certain farm products, to secure an agreement. For India, a deal with the world’s largest single market is crucial to attract foreign investment and sustain its economic growth, even as it navigates complex relationships with global powers like the U.S. and China.