India-EU FTA: A New Era of Global Trade Relations

The India-EU Free Trade Agreement, concluded on January 27, aims to facilitate trade by granting duty-free access to Indian shipments and reducing costs for luxury European imports. The agreement includes a mediation annexure for dispute resolution and covers 20 chapters, including digital trade and dispute settlement.

The Free Trade Agreement between India and the European Union, concluded on January 27, is poised to transform global trade dynamics by enabling duty-free access for 93% of Indian exports. In return, luxury cars and wines from the EU will see reduced import tariffs.

A key component of the agreement is its detailed annexure on mediation, facilitating a mutually-agreed solution to trade disputes through an efficient procedure. This outlines the process for requesting mediation, selecting a mediator, and setting the timeline for dispute resolution.

The pact, featuring 20 chapters including digital trade, represents a significant economic partnership, combining one-third of global trade and 25% of the world's GDP. It's a monumental achievement after nearly two decades of negotiations.

(With inputs from agencies.)