India, EU reach landmark trade deal

India and the European Union have signed the Òmother of all dealsÓ,
a huge trade pact to create a market of two billion people, reached
after two decades of negotiations

Benefits for Indian exporters

EU to scrap tariffs on 90% of
Indian goods, extended to 93%
within seven years

Partial cuts and quotas for about
6% of goods, bringing EUÕs average
tariff rate down from 3.8% to 0.1%

Tariffs to drop to zero

Key sector

Marine products
Leather/footwear
Chemicals
Textiles
Base metals
Plastics/rubber

Current rate (%)

26
17
12.8
12
10
6.5

Autos and agriculture kept
out of full tariff elimination

Overall, 99.5% of of bilateral trade
will benefit from some form
of tariff concession

Total number of EU
services sub-sectors
opened to Indian firms

144

Benefits for EU exporters
Indian tariffs on 30% of goods
imported from EU to fall to zero
immediately

Tariffs to be eliminated or reduced
on 96.6% of EU exports, saving up
to Û4bn ($4.7bn) a year

Tariffs to drop to zero

Key sector

Machinery
Chemicals
Iron and steel
Plastics
Pharmaceuticals
Aircraft/spacecraft

Current rate (%)

44
22
22
16.5
11
11

Tariffs on EU cars to fall from 110%
to 10% over five years*

Easier access to Indian services
market. Simpler customs rules
and stronger IP protection

Total number of Indian
services sub-sectors
opened to EU firms

102

*Annual quota of 250,000 vehicles. Cars priced below Û15,000 ($17,800) are excluded
from deal and will remain subject to higher tariffs

Sources: AFP, European Commission, Reuters
Pictures: Getty Images
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