EU and India conclude historic free trade agreement

After nearly twenty years of negotiations, the European Union and India have reached a comprehensive free trade agreement. The agreement creates a free trade zone of approximately 2 billion consumers and covers about 25 percent of the global economy, making it one of the largest trade deals ever. The agreement still needs to be approved by the Council of the EU, the European Parliament, and the Indian Parliament. This ratification process could take several months to a year.

The agreement provides for substantial tariff reductions on virtually all European exports to India. Import duties on cars, machinery, chemicals, pharmaceutical products, and various agri-food products, among other things, will be gradually reduced or abolished. For example, tariffs on cars will fall from 110 percent to 10 percent, while duties on wine, olive oil, and processed foods will be significantly reduced.

The European Commission expects exports of European goods to India to double by 2032, which could save European companies around €4 billion in import duties annually. This will greatly improve access to a rapidly growing market.

For the logistics sector, this means a significant increase in trade flows between Europe and India. With two offices in India, Berkman Forwarding has a strong local presence. In addition to logistics solutions, we also provide support with sourcing, quality control, and other value-added services.

Would you like to know what this trade deal means for your transport flows to India? Don't hesitate to contact us; we'd be pleased to help you.