This includes the EU-India free trade agreement agreed on January 27 during the visit of an EU delegation led by European Commission President Ursula von der Leyen to New Delhi.
“We have created a free trade area with a population of two billion people, and the benefits will accrue to both sides,” von der Leyen was quoted as saying by Russian news outlet RBC. She called the agreement “the greatest trade deal of all time,” a sentiment with which Indian Prime Minister Narendra Modi agreed.
The agreement took almost 20 years to prepare, so both sides consider the compromise to be mutually beneficial. The agreements will save about 4 billion euros a year in duties, Euronews believes. At full potential, the agreement creates a market of 2 billion people.
European carmakers will be the clear beneficiaries, as India’s customs duties will gradually fall from 110% to 10% if the terms are met. Tariffs in sectors such as engineering, chemicals and pharmaceuticals will also be almost completely eliminated.
As per the agreements, India will remove duties on European fruit juices, processed foods, olive oil, margarine and other vegetable oils, opening up its huge market for agricultural exports from the EU. In addition, duties on European spirits, currently as high as 150%, will be reduced to 40%.
In an interview with Euronews from New Delhi after the deal was announced, EU Trade Commissioner Maroš Šefčovič said the deal with India demonstrates the EU’s new vision for trade cooperation: a more pragmatic approach to results rather than getting hung up on political red lines.
