India and EU announce landmark trade deal

Summary

India and EU announce 'mother of all trade deals'Abhishek Dey,Arunoday Mukharji,IndiaandJessica Parker,BrusselsEPA/Shutterstock(From left) European Council President António Costa, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in Delhi on TuesdayThe European Union and India have announced a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US."We did it, we delivered the mother of all deals," European Commission President Ursula von der Leyen said at a media briefing in Delhi. Indian Prime Minister Narendra Modi called the pact "historic".It will allow free trade of goods between the bloc of 27 European states and the world's most populous country, which together make up nearly 25% of global gross domestic product and a market of two billion people.The deal will see a number of huge tariff cuts across a range of goods and services, and a joint security partnership.Von der Leyen and European Council President António Costa are in Delhi, where they met Modi at a bilateral summit.The European Commission said would eliminate tariffs on most exports of chemicals, machinery and electrical equipment, as well as aircraft and spacecraft, following phased reductions. Significantly, duties on motor vehicles, currently as high as 110%, would be cut to 10% under a quota of 250,000 vehicles. That is six times larger than the 37,000-unit quota India granted to the UK in a deal signed last July.India will also cut tariffs on wine, beer and olive oil from the EU. Brussels said the agreement would support investment flows, improve access to European markets and deepen supply-chain integration.Delhi said almost all of its exports would get "preferential access" into the EU, with textiles, leather, marine products, handicrafts, gems and jewellery set to see a reduction or elimination of tariffs.While commodities such as tea, coffee, spices and processed foods will benefit fr...