On Tuesday 27 January, the EU’s agricultural organisations and cooperatives (Copa-Cogeca) welcomed the conclusion of the free trade agreement between the EU and India, which they regard as a balanced compromise between opening up trade and protecting European agriculture (see EUROPE 13795/1).
The agreement strengthens access to the vast Indian market for certain European agri-food products thanks to a significant reduction in customs duties, while excluding the most sensitive product sectors from liberalisation. Copa-Cogeca underlines the importance of compliance with sanitary, production and sustainability standards, as well as the reciprocity of standards. It calls for a rapid finalisation of the agreement on geographical indications.
The Comité Européen des Entreprises du Vin (CEEV) has also welcomed this move, believing that India represents a major alternative market that is still largely under-exploited. The agreement provides for an immediate 50% reduction in customs duties, followed by capping of 30% or 20%, depending on the price range, within seven years.
According to spiritsEUROPE, the reduction in customs duties from 150% to 40% for spirits will pave the way for long-term growth, the creation of new jobs throughout the value chain, as well as providing Indian consumers with greater choice thanks to a complementary offer.
However, Eucolait is regretful that the dairy sector is apparently excluded from the scope of the agreement. In the absence of final legal texts, dairy products do not appear to benefit from improved access to the Indian market, which Eucolait considers to be a major missed opportunity for the European dairy industry. (Original version in French by Lionel Changeur)