European Commission Sends India FTA to Council for Approval

The European Commission has formally submitted its proposal to the European Council to sign and conclude the Free Trade Agreement with India, advancing a pact that has been described as the "mother of all deals".

If the Council authorises the move, it would become the largest trade agreement ever concluded by either the European Union or India.

The two sides had announced the conclusion of the FTA in January, a milestone in their economic relationship and in their trade engagement with key global partners.

According to the Commission, the agreement will improve market access, reduce tariffs, address unnecessary trade barriers and establish predictable rules for trade and investment once it is adopted and brought into force.

The EU and India already conduct more than 180 billion euros worth of trade in goods and services each year, a flow that supports close to 800,000 jobs in the EU.

Under the deal, tariffs would be eliminated or reduced on 96 per cent of EU goods exports to India. The Commission estimates that these cuts would save around 4 billion euros annually in duties on European products.

Trade Commissioner Maros Sefcovic said the agreement brings together two of the world's largest economies, forming a market of 2 billion people and accounting for roughly a quarter of global GDP.

He said the priority had been to ensure that businesses and citizens feel the benefits of the FTA as quickly as possible, adding that the Commission was following through by submitting its proposals to the Council for signature and conclusion in record time.

The Commission said the agreement reflects the EU's commitment to strengthening economic ties with key partners in the Indo-Pacific region.

After the Council gives its approval, the final text will still need the endorsement of the European Parliament before it can be implemented.