As part of its continuing negotiations for a Free Trade Agreement (FTA) with India, the European Union is attempting to lower tariffs on important exports including wine, whiskey, and cars. When the College of Commissioners from the European Commission visits India in the near future, trade and technology will be major topics.
Particularly for goods of substantial commercial relevance to the industries of the European Union and its member states, India maintains a comparatively protected market. These consist of liquor, wines, and cars. A comprehensive and economically significant trade deal that addresses topics like tariffs, non-tariff obstacles, and procurement policies is what the EU hopes to achieve. We expect India to make greater commitments in these and other areas.
Considering its concerns about the EU’s Carbon Border Adjustment Mechanism (CBAM), which may impose higher taxes on Indian steel and aluminum exports, India is pushing for provisions to protect its MSMEs.
Due to an additional 10% duty in the absence of a trade deal, Indian textile exports are currently at a competitive disadvantage when compared to nations like Bangladesh and Vietnam. For Indian textile producers, an FTA with the EU would help level the playing field.
In addition to trade in products, India is looking for improved skilled labor mobility opportunities and increased access to the EU services sector. The EU is an important destination for India’s services exports in addition to being a sizable market for its goods.
The EU is a major force in international trade, with the largest network of trade agreements in the world, spanning 76 nations. In comparison, India has fewer free trade agreements (FTAs) but is presently negotiating with the UK and the EU.
Additionally, sanctions against Russia and other geopolitical issues are anticipated to be discussed by the EU delegation. De-risking from China is still a top objective in EU-India ties, the source emphasized.