Priyanka Tiwari
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Suspense crime, Digital Desk : India's recent free trade deal (FTAs) with the United Kingdom, which offer considerable reductions in tariff payments for whisky, may act as a model for waivers on the EU’s trade negotiations regarding the import of wine.
In the UK deal, India committed to cutting tariffs on whisky to 75%, significantly lower than the previous 150% rate, as of the agreement’s enforcement date. The tariff is scheduled to further reduce to 40% over a ten-year period.
EU's Wine Import Tariff Strategy
India's trade partners have been persisting in requesting the sharp reduction of the 150% tariff on wine imports. With the EU being the world’s largest wine producer—accounting for 44% of wine-growing areas and over 60% of global production in 2023—market access is a key negotiating point.
A non-official source in India expressed optimism that the deal on UK whisky could serve to meet EU demands for reduced duties on wine within s the framework of FTAs.
Wider Context of India’s Trade Strategy
This was also the case in the interim trade deal India made with Australia, which included a concession of tariff cuts on premium wine exports.
India is in an active process of negotiating trade agreements with multiple partners like the EU, the United States, Oman, and New Zealand. The 11th round of India-EU FTA negotiation is set to take place in New Delhi from May 12 to May 16, 2024.
In February, Delhi welcomed Ursula Von der Leyen, alongside a 27-member delegation. Both sides agreed to try and get the FTA ready for implementation by the latter half of 2025 and to expedite the negotiation process. It is anticipated that some sort of interim or early-harvest arrangement will be reached before that, in order to fasten economic collaboration.
Trade Relations Between India and EU
The EU had become the largest trading partner of India with the figure reaching 12.2% in 2023.
The EU is the second largest export market for Indian goods after the US.
India becomes the 9th largest trading fellow for the EU’s goods, commending 2.2% share of the total value.
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