EU-India trade agreement set to ease market access for European food processing equipment suppliers

The European Union and India have largely reached agreement on a long-awaited bilateral trade deal, following nearly twenty years of negotiations. The agreement is expected to remove around 90% of existing import duties and trade barriers, creating significantly improved market access for exporters on both sides.

According to the European Commission, the deal could lead to a doubling of EU exports to India over time, supported by simplified customs procedures, reduced tariffs and stronger intellectual property protection. Once fully implemented, 99.5% of bilateral trade will benefit from some form of tariff concession.

Marcel van Huissteden, Director at Kiremko:

"I am very pleased with it. I am very proud of it."

India is a key growth market for potato processing, driven by rising consumption of processed potato products and increasing demand for capacity, efficiency and sustainable production solutions. The trade agreement is expected to lower barriers for European processing equipment suppliers, making it easier and more cost-effective to serve Indian processors and expand long-term partnerships in the region.

Key trade provisions affecting EU–India trade

Under the EU–India trade agreement, both sides will benefit from wide-ranging tariff reductions:

• For EU exporters, Indian tariffs on 30% of goods imported from the EU will fall to zero immediately, while tariffs will be eliminated or reduced on 96.6% of EU exports overall, generating annual savings of up to EUR 4 billion (USD 4.7 billion).
• For Indian exporters, the EU will scrap tariffs on 90% of Indian goods, rising to 93% within seven years. Partial tariff cuts and quotas will apply to around 6% of goods, reducing the EU’s average tariff rate from 3.8% to 0.1%.

Both Indian Prime Minister Narendra Modi and Ursula von der Leyen, president of the European Commission, called it "the mother of all deals." Modi also emphasized the trade agreement is the largest and most comprehensive that India has ever signed, representing a third of all global trade.

Ursula von der Leyen:

"We are creating a market of two billion people. This is the tale of two giants, the world's second and fourth largest economies. Two giants who choose partnership in a true win-win fashion."