India and EU strike landmark trade deal after two decades of talks

"Under the agreement, tariffs will be eliminated or phased down on most EU exports of chemicals, machinery and electrical equipment, as well as aircraft and spacecraft. Crucially for European carmakers, duties on motor vehicles, currently as high as 110 per cent, will be cut to 10 per cent under a quota of 250,000 vehicles. That quota is six times larger than the 37,000-unit allowance granted to the UK under its trade deal with India signed last July, according to Bloomberg."

"For India, the deal will give "preferential access" to the EU for almost all exports, with textiles, leather goods, marine products, handicrafts, gems and jewellery among the biggest beneficiaries. Tariffs will also be reduced or removed on commodities such as tea, coffee, spices and processed foods, although Delhi said it had protected sensitive sectors including dairy, cereals, poultry, soy meal and certain fruits and vegetables."

India and the European Union concluded a comprehensive trade agreement to enable free trade in goods between the EU's 27 member states and India. The combined market represents nearly 25 percent of global GDP and about two billion consumers. The deal eliminates or phases down tariffs on many EU exports including chemicals, machinery, electrical equipment, aircraft and spacecraft, and reduces vehicle duties to 10 percent under a 250,000-vehicle quota. India gains preferential access for most exports—textiles, leather goods, marine products, handicrafts, gems and jewellery—and sees reduced tariffs on tea, coffee, spices and processed foods, while sensitive agricultural sectors remain protected. The pact is expected to boost investment, deepen manufacturing and services links, strengthen supply chains, improve small business access, and now awaits formal approval by the European Parliament and the European Council.

Read at Business Matters