The draft of a historic Free Trade Agreement (FTA) between India and the European Union (EU) has been finalized. According to sources, once the agreement enters into force, both sides will grant each other Most Favored Nation (MFN) status. This means that both sides will be bound by World Trade Organization (WTO) rules and will not be able to impose any new export-import restrictions outside of global norms. This agreement was reached after a nearly two-decade-long process.
Prime Minister Narendra Modi has described the agreement as a new blueprint for shared prosperity. European Union (EU) President Ursula von der Leyen has described it as a free trade area for 2 billion people, which will further strengthen the world’s economic security.
The draft of a landmark free trade agreement between India and the European Union has been finalized. The agreement will phase out or reduce tariffs on 96.6 percent of products based on traded value.
This agreement will phase out or reduce tariffs on 96.6 percent of products by trade value. The EU will open 99.5 percent of its market to India. Tariffs on most products will be reduced to zero immediately or within a maximum of seven years. India will remove tariffs on 96 percent of goods by trade value.
Meanwhile, European car manufacturers and wine producers will benefit from significant tariff reductions in the Indian market. It is estimated that European exports to India will double by 2032, saving European companies approximately 4 billion euros annually. In addition to tariffs, an agreement has been reached to align food safety with the WTO.
Furthermore, both sides have committed to deepening digital trade cooperation, recognizing privacy as a fundamental right. However, both countries will retain their respective rights over personal data protection and cross-border data flows.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News