EU Moves Ahead With India Trade Deal
Slug: EU-India Trade Pact
New Delhi
The European Commission on Friday formally moved forward with the proposed Free Trade Agreement between the European Union and India, sending proposals to the Council for the signing and conclusion of the landmark pact.
If authorised, the agreement would become the largest trade deal ever concluded by both the EU and India. The pact is designed to improve market access, reduce tariffs, remove unnecessary trade barriers and establish predictable rules for trade and investment.
The EU and India currently exchange more than 180 billion euros worth of goods and services annually, supporting nearly 800,000 EU jobs, according to the European Commission. Under the proposed agreement, tariffs would be eliminated or reduced on 96 per cent of EU goods exports to India. The tariff reductions are expected to save European exporters around 4 billion euros annually in duties.
The Commission said the deal would make it easier for European businesses to enter and compete in the Indian market while giving consumers greater choice and potentially more competitive prices.
The proposal marks a key procedural step towards implementation. Following Council approval, the agreement will require consent from the European Parliament before it can be concluded and enter into force. Indian authorities are simultaneously undertaking their own internal ratification procedures.
EU Trade and Economic Security Commissioner Maros Sefcovic said the agreement connects two of the world’s largest economies, representing a market of around two billion people and approximately a quarter of global GDP.
Maros Sefcovic, EU Commissioner for Trade and Economic Security:
“Our focus has been clear from the start: to ensure that businesses and citizens feel the tangible benefits of this landmark FTA as quickly as possible.”
EU statement: The agreement will reduce tariffs, tackle unnecessary trade barriers and provide predictable rules for trade and investment between the two sides.