EU-India: the Commission sends the proposal for the signing of the free trade agreement to the Council

Brussels – The European Commission today (11 September) presented its proposals to the Council for the signing and conclusion of the Free Trade Agreement (FTA) between the European Union and India, requesting authorisation for its signing and conclusion. “If authorised by the Council, this will be the largest trade agreement ever concluded by both the EU and India,” Berlaymont Building reiterates. 

According to the Commission, once adopted and brought into force, “the agreement will improve market access, reduce tariffs, remove unnecessary trade barriers, and provide predictable rules for trade and investment between the EU and India.” The EU and India already trade goods and services worth over €180 billion a year, supporting almost 800,000 jobs in the EU. “This agreement will eliminate or reduce tariffs on 96 per cent of EU exports of goods to India. Overall, the tariff reductions will save around €4 billion a year in duties on European products. It will make it easier for European companies to access the Indian market and compete on a more level playing field, while ensuring that consumers benefit from greater choice and more competitive prices,” the Berlaymont Building points out. 

The proposal put forward is in line with the fast-track procedure established by the Commissioner for Trade and Economic Security, Maroš Šefčovič, earlier this year, which aims to speed up the implementation of FTAs: a step that Brussels describes as “crucial at a time of geopolitical uncertainty and growing pressure on the global trading system.” 

At a time of trade tensions, particularly with its long-standing ally the US, Brussels believes that “the EU-India Free Trade Agreement reflects the EU’s commitment to strengthening economic ties with key partners in the Indo-Pacific region.” With its proposals, the Commission is seeking the Council’s approval to sign the agreements, which will then require the consent of the European Parliament before they can be concluded and enter into force. Meanwhile, the Indian authorities are pressing ahead with their own internal ratification procedures.