New Delhi, March 1 -- A European Union (EU) memo on the India-EU free trade agreement (FTA) acknowledged the "very high level of protection and the sensitivities of India" while balancing interests in the agri-food sector. Meanwhile, the provisional FTA text records the bloc's commitment to the "mobilisation of financial resources" to help India reduce greenhouse gas emissions. Summarising the FTA in a memo, the EU said: "In the agri-food sector, considering the very high level of protection and the sensitivities of India, the agreement is balanced because it opens market access in key export interests while preserving sensitivities." India and the EU published the provisional text on Friday without disclosing the tariff schedule, which will be finalised upon signing by both parties. According to the provisional text, Chapter 14 deals with "Good Regulatory Practices". An annexure to the chapter specifically addresses the Carbon Border Adjustment Measures (CBAM), which was one of the most contentious issues during negotiations. India agreed to CBAM after the EU assured technical and financial support, which finds explicit mention in the provisional text made public on Saturday. The EU's CBAM, or carbon tax, is a horizontal regulation applicable to all its trading partners. The import duty on select carbon-intensive goods is levied based on their greenhouse gas emissions to offset carbon leakage. Carbon leakage occurs when EU firms import carbon-intensive products from countries with less stringent climate policies. Under the FTA, India accepted high-tech, cost-intensive measures to reduce greenhouse gas emissions in goods such as steel, cement and aluminium. In return, the EU extended both technical and financial support. "The EU shall endeavour to support India's greenhouse gas emission reduction efforts, in particular through the mobilisation of financial resources, tools, instruments and related investments, as appropriate," the text said. The second article of the FTA text on CBAM grants most favoured nation (MFN) treatment to India. "For carbon border adjustment measures, the Parties shall apply no less favourable conditions to the other Party's goods than those applied to like goods from other third countries as regards any flexibilities granted in the implementation of their carbon border adjustment measures," the text added. The EU's memo said both India and the European bloc have protected their respective sensitivities in the agri-food sector. The proposed agreement will, however, eliminate duties on several key EU agri-food exports to India, mostly with a "staging" period - a timeframe over which tariffs are gradually reduced or eliminated. Such items include olive oil (current tariff 45%), several fruit juices (up to 55%), confectionery, chocolates and pet food (33%). "The agreement also offers a significant market access improvement for wine, spirits, and beer, as well as fruits.," the memo added. Duties on alcoholic beverages exports, which currently attract up to 150% in the Indian market, will be reduced over time to 30% for most wines, 40% for all spirits, and 50% for beer. "EU exports of fruits (e.g. kiwis and pears) will benefit from sizeable Tariff Rate Quotas (TRQs), allowing the EU to expand its market shares in India," it said. "At the same time, the EU will protect its agricultural sensitivities, which means that no concession will be granted for sugar and ethanol, rice and soft wheat, beef and poultry, milk powders, bananas, and honey; and well-calibrated quotas will limit imports of table grapes and cucumbers," the memo noted. In turn, the FTA will ensure preferential access for Indian agricultural goods and processed food to 27 EU countries. According to a commerce ministry statement from January 27, "India's agricultural and processed food sectors are poised for a transformative boost under the India-EU FTA, creating a level playing field for Indian farmers and agrarian enterprises." "Key commodities such as tea, coffee, spices, fresh fruits and vegetables, and processed foods will gain enhanced competitiveness, strengthening rural livelihoods, promoting inclusive growth, and reinforcing India's position as a trusted global supplier," the statement said. India has safeguarded sensitive sectors, including dairy, cereals, poultry, soymeal, and certain fruits and vegetables, to balance export growth with domestic priorities. Prime Minister Narendra Modi and European Commission president Ursula von der Leyen on January 27 jointly announced the conclusion of the FTA at the 16th India-EU Summit in New Delhi. According to the provisional text, both sides grant MFN status to each other, a development HT reported on Saturday. The two sides are making endeavours to finalise the legal text and sign the deal by the end of 2026. Under the proposed deal, the EU will eliminate tariffs on 99% of Indian exports by value over seven years, with duties set to be cut on $33 billion in labour-intensive goods, including textiles, leather, footwear, gems and jewellery, as soon as the pact is signed. India will cut tariffs on 96.6% of EU exports, with nearly half the reductions effective immediately when the pact becomes operational, and the remainder phased over five to 10 years....