EU AND INDIA CONCLUDE FREE TRADE AGREEMENT
On 27 January, the European Union and India concluded negotiations on a comprehensive Free Trade Agreement (FTA), representing the largest trade agreement ever concluded by either party. The agreement is expected to significantly strengthen economic and political ties between the EU and India at a time of heightened geopolitical uncertainty and global economic challenges.
The EU and India already trade over €180 billion worth of goods and services per year, supporting close to 800,000 EU jobs. This deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs in value of 96.6% of EU goods exports to India. Overall, the tariff reductions will save around €4 billion per year in duties on European products.. Significant tariff reductions are foreseen across key industrial sectors, including automotive, machinery, chemicals and pharmaceuticals.
The agreement also provides improved access for EU service providers, including financial services and maritime transport and strengthens the protection and enforcement of intellectual property rights, facilitating trade and investment for businesses reliant on innovation and proprietary technologies.
In the agri-food sector, the agreement removes or significantly reduces high tariffs on a wide range of EU exports, while safeguarding sensitive EU agricultural sectors. Imports into the EU will continue to comply with strict EU food safety and health standards. Negotiations on a separate agreement on Geographical Indications are ongoing.
The draft legal texts will now undergo legal revision and translation before being submitted for approval by the Council and the European Parliament. Following ratification by both parties, the agreement can enter into force.
Source: European Commission