Brussels, Sept. 11 -- The European Commission on Friday formally submitted its proposal to the European Council to sign and conclude the Free Trade Agreement with India, marking a major step toward implementing the ambitious pact - widely termed the "mother of all deals".
If authorised by the Council, this will be the largest trade agreement ever concluded by both the EU and India.
India and the EU announced the conclusion of the FTA in January, marking a historic milestone in their economic relations and trade engagement with key global partners. Once adopted and entered into force, the agreement will improve market access, reduce tariffs, tackle unnecessary trade barriers, and provide predictable rules for trade and investment between the EU and India, the Commission said in a press release.
The EU and India already trade over 180 billion euros worth of goods and services per year, supporting close to 800,000 EU jobs.
This deal will eliminate or reduce tariffs on 96 per cent of EU goods exports to India. Overall, the tariff reductions will save around 4 billion euros per year in duties on European products, the release said.
"This agreement brings together two of the world's largest economies - a market of 2 billion people and around a quarter of global GDP," Maros Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency, said in a statement.
"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. Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time," he added.
The EU-India FTA "reflects the EU's commitment to strengthen economic ties with key partners in the Indo-Pacific region," the release said.
Once approved by the Council, the final text will require the European Parliament's approval before its implementation.
Meanwhile, the India-EU FTA will allow EU carmakers to export up to 1 lakh passenger vehicles annually at concessional duties initially, rising to 1.6 lakh from the 10th year. The quota covers ICE and hybrid vehicles, with duties linked to vehicle value.
The pact also provides concessions on wines, alcoholic beverages and select agricultural products. Wine valued at Euro 10 or more per 750 millilitres will see duty fall from 150 per cent to 20 per cent from Year 8.
Quotas include 2,000 metric tonnes of pork, 50,000 metric tonnes of apples in Year 1, 12,000 metric tonnes of kiwifruit, 2,250 metric tonnes of pears and 20 metric tonnes of peaches. The FTA is likely to be signed by year-end and may come into force next year.
Published by HT Digital Content Services with permission from Millennium Post.