India-EU trade pact may cut textile, liquor duties

India and the European Union (EU) have stepped on the accelerator to conclude their long-delayed free trade agreement (FTA), at a time US tariff actions have threatened global trade.

- Dhirendra Kumar

NEW DELHI:

In the latest round of talks between the two sides in Brussels on 10-14 March, a move to reduce duties on textile exports from India and premium alcoholic beverages from the EU has emerged as a key negotiation manoeuvre, three people aware of the matter said on the condition of anonymity.

Currently, India imposes up to 150% duty on alcoholic beverages from the EU, while the 27-country EU levies a duty of up to 14% on Indian textile goods. Comparatively, India's textile rival Bangladesh has free access to the European market, with zero import duty.

"The concessions on spirits are among several other important issues on the negotiating table," the first person mentioned above said. "India is exploring the option of lowering tariffs on alcoholic beverages from the EU while protecting the interests of domestic manufacturers."