EU to seek reduction in duty on wine, cars

The European Union wants India to lower customs duties on key imports such as wine, cheese and cars while offering greater flexibility for Indian exports without insisting on strict reciprocity.

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A full delegation of the European Commission will visit India on February 27-28 for a plenary session with Prime Minister Narendra Modi to discuss trade, economic security and resilient supply chains.

The visit will also feature the second EU-India Trade and Technology Council (TTC) meeting, where discussions will cover clean technologies, digital infrastructure and trade system compatibility.

European Commission President Ursula von der Leyen will lead the delegation, accompanied by the EU College of Commissioners. This marks the first-ever visit of the entire College of Commissioners to India and one of the first such visits since the new European Commission took office in December 2024, following the June 2024 European parliamentary elections.

The timing of the visit is significant, as US President Donald Trump has been threatening trade partners, including the EU and India, with reciprocal tariffs.

India currently imposes a basic customs duty of 70-100 per cent on cars and 150 per cent on most wines and spirits — key concerns for the EU in trade negotiations.

Von der Leyen has already announced a new strategic agenda for EU-India relations, and negotiations for a Free Trade Agreement (FTA) between India and the EU are set to resume next month. These talks will build on previous discussions, aiming to finalise a deal covering digital trade, intellectual property and sustainable development.

With over 6,000 European companies operating in India, the FTA is expected to boost economic cooperation, enhance market access and facilitate investments across both regions.