India–EU Free Trade Deal to Cut Tariffs on Wine, Olive Oil and Processed Foods

India and the European Union are moving closer to finalising a free trade agreement that will reshape agricultural trade between the two regions. Under the proposed pact, India will significantly reduce import duties on several European food and beverage products, while keeping politically sensitive agricultural sectors shielded from liberalisation.

According to official European Union documents, the agreement aims to reduce high agri-food tariffs, which currently average more than 36 percent. The deal is designed to gradually open the Indian market to European products while ensuring that essential domestic agricultural sectors remain protected.

Cheaper European Food and Beverages in India

As part of the agreement, India has committed to major tariff reductions on select agricultural imports from the EU. Import duties on wine, which currently stand at 150 percent, will be cut to 75 percent once the agreement takes effect and will be further reduced over time to as low as 20 percent.

Olive oil will see one of the most significant changes, with tariffs dropping from 45 percent to zero over a five-year period. In addition, duties of up to 50 percent on processed food items such as baked goods and confectionery products will be removed entirely.

These measures are expected to give European wines, spirits, beers, olive oil, and processed foods greater access to India’s rapidly expanding consumer market.

Sensitive Agricultural Products Remain Safeguarded

Despite these concessions, India has chosen to keep several key agricultural products outside the scope of tariff reductions. Items such as beef, poultry, rice, and sugar will continue to face existing protections, reflecting India’s cautious approach to liberalising sectors that are politically and economically sensitive.

Food Safety Rules to Stay Intact

The agreement will not alter existing food safety and health regulations. All imported products will still be required to meet strict safety standards, ensuring consumer protection remains a priority.

Separate Talks on Geographical Indications

Alongside the trade agreement, India and the EU are also negotiating a separate deal on Geographical Indications (GIs). This initiative aims to protect traditional European products from imitation in the Indian market and strengthen branding for region-specific goods.

EU Hails Agreement as a Major Milestone

European officials have described the agri-food provisions of the agreement as a major breakthrough. Christophe Hansen, the European Commissioner for Agriculture and Food, said the pact will connect markets serving nearly two billion people and unlock new opportunities for European exporters who have long faced high tariffs in India.

He also emphasised that the deal balances market access with safeguards for sensitive sectors, noting that tariffs on products such as beef, sugar, rice, ethanol, and poultry will remain in place. Hansen added that maintaining high food safety standards is a core principle of the agreement.

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