New delhi: India and the European Union have officially announced the conclusion of a landmark free trade agreement, as declared by European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi during a European-Indian Summit in New Delhi.
According to Bahrain News Agency, this agreement marks a significant milestone in the relationship between the two largest democracies in the world. Von der Leyen emphasized the historic nature of the deal, stating, “We have created a free trade zone of 2 billion people, with both sides set to gain economically.”
The agreement outlines significant tariff reductions, with India set to lower tariffs on imported cars from 110% to as low as 10%, while tariffs on car parts will be abolished within five to ten years. Additionally, duties on certain EU agricultural products will see substantial reductions and duties on olive oil will be completely abolished, as reported by the German News Agency (DPA).
The European Commission has ensured that sensitive European agricultural sectors remain protected under the agreement. Products such as beef, chicken meat, rice, and sugar are excluded from the deal, and EU standards will continue to apply to all imports from India.
Before the agreement can be fully implemented, it will require formal adoption by EU member countries and the European Parliament.