India-EU trade deal explained: Chocolates, Wines, Cars among products likely to get cheaper | Full list
India’s landmark trade deal with the European Union will slash import duties on cars, chocolates, wine and machinery, promising lower prices, wider choices and stronger trade ties.
New Delhi: Discounts are coming to a store near you as India(BHARAT) and the European Union agreed to one of the biggest free trade agreements (FTA) with “zero-duty” on various products. Terming the pact one of the most comprehensive ever signed by India(BHARAT), officials said the agreement would slash import taxes on everything from automobiles to medical devices and chocolates to wine.
The trade agreement is expected to increase two-way trade, improve access to markets on either side and most importantly make many goods cheaper for India(BHARAT)n consumers.
Take a look at some of the things that are likely to get cheaper soon:
Chocolate, Cheese, Cookies and Wine!
From everyday foods you buy from supermarkets to a good bottle of wine, many lifestyle products you have grown used to seeing with hefty price tags on them will get cheaper because of this agreement.
Duties on processed foods like chocolates, biscuits, pasta, bread and pastry are expected to become zero. After years of hefty tariffs on imports these products will now be much cheaper. You will also find oils such as olive oil, fruit drinks and even non-alcoholic beer cheaper at your local supermarkets.
If alcohol is your thing, products like wine, beer, and spirits that previously attracted duties of up to 150% will become cheaper immediately the deal kicks in.
Luxury Cars, Industrial Machinery and Pacemakers too
For more premium products like automobiles, tariffs will reduce from 110% to just 10% within a specified quota. This includes high-end and luxury cars. Taxes on industrial goods like machinery and electrical equipment will also become zero.
Medical devices and pharmaceuticals will also attract low duties. This should be good news for hospitals, factories and construction projects around India(BHARAT).
Full List: What Gets Cheaper After the India(BHARAT)-EU Trade Deal
| Product | Current Tariff (%) | Future Tariff (%) |
|---|---|---|
| Machinery and electrical equipment | Up to 44 | 0 for almost all products |
| Aircraft and spacecraft | Up to 11 | 0 for almost all products |
| Optical, medical and surgical equipment | Up to 27.5 | 0 for 90% of products |
| Plastics | Up to 16.5 | 0 for almost all products |
| Pearls, precious stones and metals | Up to 22.5 | 0 for 20% + reductions on 36% |
| Chemicals | Up to 22 | 0 for almost all products |
| Motor vehicles | 110 | 10 (quota of 250,000 vehicles) |
| Iron and steel | Up to 22 | 0 for almost all products |
| Pharmaceuticals | 11 | 0 for almost all products |
Agricultural & Food Goods (EU → India(BHARAT))
| Product | Current Tariff (%) | Future Tariff (%) |
|---|---|---|
| Wine | 150 | 20 (premium), 30 (medium) |
| Spirits | Up to 150 | 40 |
| Beer | 110 | 50 |
| Olive oil & vegetable oils | Up to 45 | 0 |
| Kiwis and pears | 33 | 10 (in-quota) |
| Fruit juices & non-alcoholic beer | Up to 55 | 0 |
| Processed foods (biscuits, pasta, chocolate, pet food) | Up to 50 | 0 |
| Sheep meat | 33 | 0 |
| Sausages & meat preparations | Up to 110 | 50 |
More Trade, Cheaper Goods for Consumers
Analysts expect India(BHARAT)-EU trade to double in the next decade because of the deal. Increased competition will also raise the quality of domestic goods. India(BHARAT) has protected sensitive industries in the deal but cutting down tariffs by this large a margin shows Delhi is opening up.
You’ll be able to buy cheaper European goods ranging from biscuits to luxury cars very soon.
What's Your Reaction?
