India-EU free trade agreement to be signed by December
What's the story
India and the 27-nation European Union (EU) are set to sign a free trade agreement (FTA) by December, Commerce and Industry Minister Piyush Goyal announced today. The deal is expected to come into effect between February and March next year. The announcement comes after both parties concluded negotiations for what Goyal termed the 'mother of all deals' on January 27 this year.
Trade benefits
US Trade Representative to visit India this week
Goyal said the India-EU FTA will open almost the entire European market for India with near-zero duty. He made this statement during an interaction with chartered accountants in Mumbai. The minister also revealed that his US Trade Representative, Jamieson Greer, will be visiting India this week to discuss trade pacts. "The whole world is looking toward India," he added, highlighting India's growing global trade significance.
Trade impact
FTA to grant duty-free access to Indian goods in EU
The India-EU FTA is expected to grant duty-free access to nearly 93% of Indian exports into the 27-nation bloc. This will not only boost India's exports but also make imports from the EU, such as luxury cars and wines, cheaper. Together, India and the EU account for a quarter of global GDP and one-third of international trade (about $11 trillion out of $33 trillion).
Global interest
Canada wants early conclusion of FTA with India
Goyal also revealed that during the G7 Summit in France, the Canadian Prime Minister expressed interest in concluding the proposed free trade agreement with India this year. The two sides had held their second round of negotiations for the Comprehensive Economic Partnership Agreement in May.