india-eu-trade-pact-to-be-signed-by-december-goyal

India and the European Union are expected to sign their long-awaited free trade agreement (FTA) by December, with the pact likely to come into effect during February-March next year, Commerce and Industry Minister Piyush Goyal said on Sunday.

 

Speaking at an interaction with chartered accountants in Mumbai, Goyal said the agreement would significantly expand India's access to the European market by reducing tariffs on a wide range of goods.

 

“Now, with almost zero duty, almost the entire European market will be open for us. The EU's FTA will be signed by December and will be effective by February-March,” he said.

 

India and the 27-member European Union had announced the conclusion of negotiations for the trade agreement on January 27 this year, describing it as the “mother of all deals”.

 

Under the proposed pact, around 93 per cent of Indian exports to the EU are expected to enjoy duty-free access, providing a major boost to sectors ranging from textiles and engineering goods to pharmaceuticals and chemicals. In return, imports of luxury cars and wines from European countries are likely to become cheaper in India.

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Together, India and the EU account for nearly a quarter of global gross domestic product and about one-third of international trade, underlining the significance of the agreement for both economies.

 

Goyal also said Jamieson Greer, US Trade Representative, is scheduled to visit India this week for discussions on a proposed bilateral trade pact.

 

“The whole world is looking towards India,” the minister said, highlighting the country's growing importance in global trade and supply chains.

 

Later, speaking to reporters, Goyal said the Canadian Prime Minister had expressed interest during the recent G7 Summit in France in concluding the proposed free trade agreement with India this year.

 

India and Canada held the second round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) in May as both countries seek to deepen economic ties.