The EU and India have concluded negotiations on the world’s largest ever free trade agreement.
The European Commission said the “historic, ambitious and commercially significant” deal will lead to a doubling of EU exports to India by 2032.
The EU and India currently trade more than €180 billion worth of goods and services each year.
Around €4 billion per year worth of tariffs currently paid on EU exports will be eliminated, the European Commission estimates.
“This is the most ambitious trade opening that India has ever granted to a trade partner. It will
give a significant competitive advantage for key EU industrial and agri-food sectors.”
“Sensitive” European agricultural products like beef, chicken meat, rice and sugar are excluded from deal.
The European Commission says European farmers will be able to sell processed agricultural products like bread and confectionary to India tariff-free as part of the agreement.
European Commission President, Ursula von der Leyen, said:
“We have created a free trade zone of 2 billion people, with both sides set to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great outcomes.”
The EU and India first launched negotiations for a free trade agreement in 2007. But the talks were
suspended in 2013.
When von der Leyen came into office, she oversaw the relaunching of trade discussions in 2022.
The deal will now be scrutinised by EU ministers including the Irish government and the European Parliament.
EU ministers will need to approve the deal before it can be put forward for signature.
“Following the signature, the agreement requires the European Parliament’s consent, and the Council’s decision on conclusion for it to enter into force. Once India also ratifies the Agreement, it can enter into force”, the European Commission said.