NEWS
THE SUCCESS OF EU-INDIA TRADE TALKS NEXT WEEK HINGES ON WINE & SPIRITS TARIFFS
By Susan Lewis
6-3-2025
Credit: Doubao
The European Union is set to request India to lower its tariffs on wines and spirits in the next round of free trade talks to open next week.
The request came after India cut the tariffs of Bourbon from 150 to 100 percent after US president Donald Trump exerted pressure on Indian Prime Minister Narendra Modi.
European Commission president Ursula von der Leyen’s visited New Delhi last Thursday aiming at expediting the trade talks, which is deemed crucial for the EU at this time of high geopolitical risks with Trump’s global trade war.
The EC president has met with Indian PM Modi and trade minister Piyush Goyal trying to address issues of tariff reductions and broadening of market access for European goods.
India maintains high import duties on several goods from the EU, including a 60 percent on automobiles and 150 percent on wines and spirits.
These tariffs have been a point of contention for both sides to enter into a comprehensive free trade agreement.
Analysts estimate that if India is to lower tariffs on these products, it could result in potential losses of about USD 7 billion annually for India.
The EU has indicated a willingness to show flexibility on agricultural issues to facilitate the progression of free trade negotiations.
Despite the potential benefits of a strengthened partnership, resistance from domestic industries could impede negotiation progress.
(the writer can be contacted at: info@thewinechronicle.com)
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