The European Automobile Manufacturers’ Association (ACEA) has welcomed the conclusion of negotiations for a free trade agreement (FTA) between the European Union and India, describing it as a landmark moment in global trade relations.
The FTA signals a strong commitment by both parties to pursue more open and mutually beneficial trade relations, running counter to global protectionist trends. The agreement is expected to facilitate European automobile exports into India, a market of approximately 4 million passenger cars, which until now has been heavily protected by import tariffs of up to 110%.
While the deal includes certain restrictions, such as quota limitations and residual tariffs, which may temper some of the potential benefits, ACEA said a full assessment of the detailed terms will begin once the official texts are published in the coming weeks.
ACEA members have expressed support for the FTA and plan to urge EU member states and the European Parliament to approve the agreement promptly to allow for its swift implementation.
“European automakers see the EU-India FTA as an important step toward expanding trade opportunities and strengthening industry ties in one of the world’s fastest-growing automobile markets,” ACEA noted in a statement.
