India–EU trade deal: Wines, olive oil and chocolates set to get cheaper

The India-European Union (EU) free trade agreement (FTA) will see India cut steep tariffs on a range of European agri-food products, including wines, olive oil and processed foods, while keeping politically sensitive farm sectors outside the scope of liberalisation.

According to an official EU factsheet, the deal targets agri-food duties that currently average over 36%, signalling a calibrated opening of the Indian market even as key staples such as rice, sugar and meat remain protected.

What gets cheaper

Under the agreement, India has committed to deep tariff cuts on select agri-food imports from the EU. Wine tariffs will be reduced from 150% to 75% at entry into force and progressively lowered further to levels as low as 20%.

Olive oil tariffs will fall from 45% to zero over five years.

Tariffs of up to 50% on processed agricultural products, including bread and confectionery, will be eliminated.

These concessions will give European wines, spirits, beers, olive oil and confectionery preferential access to the Indian market.

What stays protected

At the same time, the agreement fully excludes several sensitive agricultural products from liberalisation.

Products such as beef, chicken meat, rice and sugar will remain outside the scope of tariff cuts, reflecting India’s cautious approach to opening up politically sensitive farm sectors.

Food safety standards unchanged

The EU factsheet notes that all imports under the agreement will continue to be subject to the bloc’s strict health and food safety standards, which will remain unchanged.

Separate talks on Geographical Indications

In parallel, India and the EU are negotiating a separate agreement on Geographical Indications (GIs). The GI talks aim to help traditional European farming products sell more in India by addressing imitation and unfair competition.

EU calls deal ‘historic’

Commenting on the agri-food chapter of the agreement, Christophe Hansen, European Commissioner for Agriculture and Food, said: “Thanks to this historic trade agreement, the markets of nearly 2 billion people are joined together. Our agri-food exports to India have so far been held back by extremely high tariffs. Under this agreement European wines, spirits, beers, olive oil, confectionary, and other products will enjoy preferential access to the rapidly growing Indian market.”

He added that the agreement balances new market access with protections for sensitive sectors:

“Front and centre to these negotiations, was maximizing new opportunities for our unmatched European products, while protecting European farmers. That is why the tariffs on the most sensitive products such as beef, sugar, ethanol, rice and poultry will remain in place. As in any trade agreement, our high food safety standards are fully maintained. The safety of EU consumers is non-negotiable," Hansen said.