The EU and India have finalised and signed their trade agreement opening up a free trade market of up to 2 billion dubbed as the “Mother of all Trade deals”. EU Commission President Ursula von der Leyen and EU Council President Antonio Costa were present in New Delhi to oversee the signing of the agreement.
President Ursula von der Leyen said that the trade agreement will help Europe reduce its dependencies. The agreement also includes cooperation on piracy and cyber-security. Tariffs on EU products to India will be phased out in 5 to 10 years.
A full list of EU and Indian products that will have their tariffs reduced is being published below.
You can view the full press conference here. The details of the trade agreement can be found here.
EU Products
- Machinery and electrical equipment — Tariffs up to 44% mostly eliminated or significantly reduced (phased over 5–10 years); this is the EU’s largest export category to India.
- Chemicals — Tariffs up to 22% mostly removed at entry into force or shortly after.
- Automobiles (motor vehicles) — Tariffs reduced from up to 110% to 10% (under an annual quota of 250,000 vehicles); phased over several years.
- Car parts and automotive components — Most tariffs eliminated after 5–10 years.
- Pharmaceuticals — Tariffs up to 11% mostly eliminated (often at entry into force or phased).
- Aircraft and spacecraft (including avionics) — Tariffs up to 11% reduced to zero, phased over up to 10 years.
- Iron and steel — Tariffs up to 22% mostly eliminated for nearly all products.
- Plastics and rubber — Many tariffs removed at entry into force or after 7 years.
- Cosmetics — Tariffs up to 22% mostly removed after 5–7 years.
- Medical devices — Significant tariff reductions (aligned with broader industrial and pharma benefits).
- Agri-food and processed foods (including olive oil, confectionery, chocolates, pastries, breads, biscuits, pasta, pet food, fruit juices, non-alcoholic beer) — Tariffs up to 45–55% eliminated or reduced (e.g., olive oil to zero over 5 years; many processed items at entry or staged).
- Alcoholic beverages — Wine tariffs reduced from 150% to 20–30% (phased, depending on price range); spirits to 40%; beer from 110% to 50%.
- Sheep meat and prepared meats — Tariffs (e.g., 33–110%) reduced or eliminated (phased).
- Other industrial goods — Broad reductions across plastics, base metals, and related sectors.
Indian Products
- Textiles and apparel — Tariffs (around 10–12%) reduced to zero immediately; major boost for garments and clothing.
- Leather and footwear — Tariffs (up to 17%) eliminated to zero from day one.
- Marine products / fisheries (e.g., shrimp, prawns, seafood) — Tariffs (up to 26%) cut to zero immediately or phased quickly for many items.
- Gems and jewellery (including diamonds) — Tariffs (around 4%) reduced or eliminated to zero.
- Chemicals — Tariffs (up to 12.8%) cut to zero on key exports.
- Plastics and rubber — Tariffs (around 6.5%) eliminated to zero.
- Base metals (including iron and steel) — Tariffs (around 10%) reduced or eliminated (with some access via improved duty-free quotas for steel).
- Tea, coffee, and spices — Immediate duty elimination or significant reductions.
- Handicrafts — Preferential access with tariff reductions or elimination.
- Sports goods and toys — Immediate zero tariffs in many cases.
- Pharmaceuticals — Enhanced access with tariff reductions (helping generics and related products).
- Engineering goods — Broad reductions supporting machinery and components.
- Processed food items — Zero duty or phased elimination for certain categories.
- Other sectors — Includes certain poultry products, preserved vegetables, bakery items (via tariff reductions or TRQs); arms and ammunition (phased zero duty).
Newsroom
Leave a Reply