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Free trade agreement was agreed between India and EU on Tuesday.
On the Free Trade Agreement (FTA) between India and the European Union (EU), US Trade Officer Jamieson Greer has said that India is going to get the biggest benefit of this agreement. According to him, this deal is tilted in favor of India in many ways.
Greer said in an interview to Fox Business that after the implementation of the agreement, India will get more access to the European market and overall India will be on top. He said,
I have seen few details of the deal so far. To be honest, India seems to be benefiting from this. India is getting more access to the European market.
The British newspaper Telegraph has praised this agreement for India. The newspaper has written that PM Modi is the real winner of this agreement.
Listen to Greer’s statement here…
Greer said- EU is looking for new markets due to strict US trade policy
Greer also said that a major reason for the India-EU free trade deal is America’s changing trade policy. According to him, America is now giving priority to domestic manufacturing. At the same time, it is not giving other countries easy access to the American market.
Greer said that during the tenure of President Donald Trump, emphasis was laid on promoting domestic production and steps like tariffs on goods coming from foreign countries were taken. Due to this, many countries, especially the European Union, have started looking for new markets to sell their products.
It may become easier for Indian workers to go to Europe
According to Greer, the India-EU Free Trade Agreement includes provisions related to the movement of Indian workers to Europe.
He says that under this deal, Indian professionals and workers can get more opportunities to work in European countries. Greer said,
It seems that some immigration rights may also be given in the agreement. I don’t have complete information yet, but EU President Ursula von der Leyen has already talked about mobility of Indian workers in Europe.
According to him, India is going to benefit in a big way from this trade deal. Greer also said that this agreement will provide a big opportunity to Indian companies to increase business in Europe.
PM Modi becomes real winner from trade deal
The British newspaper The Telegraph has written that the European Commission is calling the FTA its biggest victory, but in reality, Prime Minister Narendra Modi is considered to be the biggest winner of this agreement.
According to the newspaper, the European Union has ignored the close friendship between India and Russia for this agreement. PM Modi’s closeness to Russian President Vladimir Putin is well known, yet EU chose the path of increasing trade with India.
India has been buying large quantities of crude oil from Russia after the Ukraine war. US President Donald Trump had tried to put pressure on India by imposing tariffs up to 50%.
Despite this, India has emerged as a country which is doing business with Russia, EU, China and America simultaneously. US Treasury Secretary Scott Besant has accused the EU of funding a war against itself.
The EU believes that America’s harsh tariffs and its aggressive policy have weakened international trade rules. In such a situation, Europe has moved rapidly towards a big market like India. Due to this, the EU is being accused of ignoring India’s oil purchases from Russia.
On January 27, India-EU FTA was signed in the presence of PM Modi, European Council President Antonio Costa (centre) and European Commission President Ursula von der Leyen (left).
India-EU seal ‘Mother of All Deals’
India and European Union signed a free trade agreement on Tuesday. It is being called the ‘Mother of All Deals’. This agreement will create a market of about 2 billion people and will cover about 25% of global GDP.
Under the agreement, tariffs on 99% of India’s exports to the EU will be abolished, while duty in India will be reduced on more than 97% of the exports from the European Union.
According to news agency PTI, this agreement is likely to be implemented in 2027. After this deal, the tax on European cars like BMW and Mercedes imported into India will be reduced from 110% to 10%.
Apart from this, tax on liquor and wine coming from Europe to India may be reduced. Currently, there is a 150% tariff on liquor from European countries. This will be reduced to 20–30%.
FTA requires approval of European Parliament
The FTA between the European Union and India will not come into effect immediately. This agreement may be implemented in a phased manner by 2027. This is because of the EU’s mandatory and lengthy approval process.
Any major trade agreement in the EU requires formal approval by the European Parliament and member states before it can be implemented. A political agreement by the European Commission alone is not enough.
To implement the FTA, it will be debated and voted on in the European Parliament. Parliament has the right to approve, block or demand changes to the agreement.
The EU Parliament has previously raised objections to trade deals over issues such as the environment, human rights and judicial oversight. In such a situation, questions may also be raised on this deal with India. (file photo)
What will be the approval process?
First of all, the conditions agreed between the European Commission and India will be given legal form. This will include tariff cuts, sector-wise exemptions and timelines for implementation.
After this the agreement will go to the EU Council, where the governments of all the member countries will approve it. After getting consent from here, it will be presented in the European Parliament.
Voting will take place after debate in the European Parliament. The agreement can be taken forward only if Parliament approves it. In some cases it is considered a mixed agreement, in which case it may also require ratification by the national parliaments of some member states.
FTA will reduce tariffs by ₹43 thousand crores
European Commission President Ursula von der Leyen said on Tuesday that this free trade agreement will reduce tariffs by about 4 billion euros (43 thousand crore rupees) every year and will create new employment opportunities for millions of people in India and Europe.
He said that the India-EU Free Trade Agreement gives a clear message to the world that the best answer to today’s global challenges is mutual cooperation, and not taking decisions in isolation.
Mercedes-BMW imported cars will be cheaper in India
Now cars imported from Europe will become cheaper in India. The Indian government has reduced the import duty on cars coming from Europe from 110% to 10%.
However, the government has set an annual limit of 2.5 lakh vehicles for this. This decision is part of the free trade agreement between India and the European Union.
However, in India, most of the popular cars of Mercedes-Benz and BMW are already manufactured through local assembly. That means the parts are imported and assembled here. Import duty on these is only 15-16.5%, hence there will be no major change in their price due to FTA with EU. Read the full news…
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