The EU is urging India to reduce import duties on key European products: whiskey, wine, and automobiles. The European Union is pressing for reduced tariffs on whiskey, wine, and car exports in Free Trade Agreement (FTA) talks with India. The demand will be a primary focus during the visit of the EU’s College of Commissioners, headed by President Ursula von der Leyen, to India in February.
A representative stated that the European Union is seeking a broad and commercially significant trade deal that tackles multiple issues beyond tariffs, including non-tariff trade obstacles and government purchasing regulations.
EU officials highlight that trade and technology are priorities as both parties work towards a significant agreement. They stress the need for India to open its market further, particularly for key EU products, and seek stronger commitments on tariffs, non-tariff barriers, and procurement rules.
The EU’s request for reduced tariffs comes after nine rounds of negotiations between both parties. India and the EU have been discussing a ‘balanced and mutually beneficial’ trade since May 2021. With nine rounds completed and a tenth round set for March 10-14 in Brussels, this could become India’s largest FTA, enhancing market access for textiles, leather, and marine products. The EU is India’s second-largest export market after the US.
India is advocating for support measures for its micro, small, and medium enterprises (MSMEs) due to concerns over the EU’s Carbon Border Adjustment Mechanism (CBAM), which could increase duties on Indian steel and aluminum exports. Recently, the EU granted trade concessions to the Mercosur bloc under a deal finalized last year.
European representatives remain hopeful about finalizing a trade agreement while recognizing the difficulties in aligning trade priorities between both parties. India has fewer FTAs but is currently negotiating one with the EU.
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