BRUSSELS, Jan 27 (KUNA) -- The European Union (EU) said on Tuesday that it hopes the free trade agreement with India, which it described as "historic", will double European exports to India by 2032, following negotiations that lasted nearly two decades.
In a press release, the EU explained that the current volume of trade between the two sides exceeds 180 billion euros annually in goods and services, supporting nearly 800,000 jobs within the European Union.
It expected the agreement to double EU goods exports to India by 2032 through the elimination or reduction of tariffs on 96.6 percent of EU exports to the Indian market, saving around 4 billion euros per year in duties on European products.
The EU pointed out that this agreement represents the "widest trade opening" India has ever granted to any trading partner, as it gives European companies preferential access to a market of about 1.45 billion people, with an annual GDP of approximately 3.4 trillion euros.
In the industrial sector, tariffs on cars will be gradually reduced from 110 percent to as low as 10 percent, while tariffs on car parts will be fully eliminated over a period ranging between five and ten years. Tariffs of up to 44 percent on machinery, 22 percent on chemicals, and 11 percent on pharmaceuticals will also be eliminated or reduced.
In the agri-food sector, high tariffs averaging more than 36 percent on European exports will be reduced or eliminated. Tariffs on wine will fall from 150 percent to 75 percent upon entry into force of the agreement and later to around 20 percent, while tariffs on olive oil will be reduced from 45 percent to zero over five years. Tariffs of up to 50 percent on products such as bread and confectionery will also be abolished.
In return, the EU confirmed the protection of sensitive agricultural sectors such as red meat, poultry, rice and sugar, which were excluded from trade liberalization, while maintaining strict health and food safety rules on Indian imports.
In the services sector, the agreement grants European companies, according to the statement, preferential access to the Indian market in key areas such as financial services and maritime transport.
The agreement also provides a high level of protection for intellectual property rights, including copyright, trademarks, designs, trade secrets and plant variety rights, facilitating trade and investment between the two sides.
On sustainability, the agreement includes a dedicated chapter on sustainable development, environmental protection, tackling climate change, supporting workersآ’ rights and womenآ’s empowerment. The two sides also intend to sign a memorandum of understanding to establish an EU-India cooperation platform for climate action in the first half of 2026.
The EU announced that it plans to provide financial support of up to 500 million euros over the next two years to support Indiaآ’s efforts to reduce greenhouse gas emissions and accelerate sustainable industrial transformation. (end) arn.mt