India-EU Trade Deal Enters Final Stretch, European Commission Submits Agreement To Council For Signing
· Free Press Journal
New Delhi: The landmark India-European Union Free Trade Agreement (FTA) has moved a step closer to implementation after the European Commission formally submitted proposals to the European Council for the pact's signature and conclusion.
The move marks another significant milestone for the agreement, described as the “mother of all deals”. India and the EU had announced the conclusion of negotiations in January.
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If authorised, it would become the largest trade agreement ever concluded by both India and the European Union.
Tariffs on 96% of EU Goods to Fall
Once implemented, the India-EU FTA is expected to improve market access, lower tariffs, remove unnecessary trade barriers and create more predictable rules for businesses and investors.
The agreement will eliminate or reduce tariffs on 96% of EU goods exported to India, according to the European Commission.
Free Trade Agreements Accelerate India’s Export Growth, Boost Global Market Access And Strengthen Trade ProspectsThese tariff reductions are estimated to save European exporters around €4 billion annually in customs duties.
India and the EU already exchange more than €180 billion worth of goods and services each year, with bilateral commerce supporting nearly 800,000 jobs in the European Union.
Market of 2 Billion Consumers
Maroš Šefčovič, European Commissioner for Trade and Economic Security, said the agreement brings together two of the world's largest economies, representing a combined market of around 2 billion people and roughly one-quarter of global GDP.
He said the Commission was moving swiftly to ensure businesses and citizens could benefit from the trade agreement as soon as possible.
Parliament Approval Still Required
The European Commission said the pact also reflects the EU's strategy of strengthening economic relationships with major partners across the Indo-Pacific.
The agreement, however, still faces further institutional steps before becoming operational.
India-UK Free Trade Agreement Comes Into Force: Scotch, Luxury Cars Get Cheaper; Exporters Eye Major GainsFollowing authorisation by the European Council, the final India-EU trade agreement will require approval from the European Parliament before it can enter into force.
The pact is expected to deepen India-EU economic ties while creating fresh opportunities for trade and investment.