EU moves trade deal with India closer to finish line | Today’s news
The European Commission on Friday moved the EU-India free trade agreement closer to implementation, presenting proposals to the Council of the European Union for its approval to sign and conclude the landmark pact, often described as the “mother of all deals”.
If approved by the Council and subsequently approved through the required procedures, the Free Trade Agreement (FTA) would be the largest trade agreement ever concluded by the EU and India, the Commission said.
The pact would eliminate or reduce tariffs on around 96% of goods exported from the EU to India, with the Commission estimating that the tariff reductions would save European exporters around €4 billion in duties annually.
The agreement aims to improve market access, remove unnecessary barriers to trade and provide more predictable rules for trade and investment between the two sides. This is expected to make it easier for European companies to enter the Indian market and compete on a level playing field, while providing consumers with greater choice and potentially more competitive prices, the Commission said.
The EU and India currently trade goods and services worth more than €180 billion a year, supporting almost 800,000 jobs in the EU, according to the Commission.
“Timing matters, which is why we are now moving forward by presenting our proposals to the Council for signature and conclusion in record time,” said Maroš Šefčovič, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.
The agreement brings together the world’s two largest economies, which represent a market of 2 billion people and about a quarter of global gross domestic product, Šefčovič said.
Approval path
The Commission asked the Council to authorize the signature of the agreement. It will then require the approval of the European Parliament before being concluded and entering into force. Indian authorities are simultaneously carrying out their own internal ratification procedures, the Commission said.
The proposal follows the EU’s accelerated procedure for trade agreements, which Šefčovič outlined earlier this year with the aim of speeding up their implementation. The commission said speeding up the process was particularly important at a time of geopolitical uncertainty and growing pressure on the global trading system.
The EU-India pact also forms part of the bloc’s broader efforts to strengthen economic ties with key partners in the Indo-Pacific region, the Commission said.
The move follows the conclusion of negotiations between the EU and India, paving the way for formal approval and ratification on both sides.
“Fantastic news! The EU-IN FTA has just moved one step closer to the finish line! The @EU_Commission has sent its proposal to the @EUCouncil, paving the way for an early approval; while the full text is now public. It’s not just another deal. It’s a bold leap for two economic powers!” said Jean-Eric Paquet, EU Ambassador to India and EU Ambassador Designate to Xhutan.
