India-EU FTA: A New Era of Global Trade Relations

The Free Trade Agreement between India and the European Union, concluded on January 27, is poised to transform global trade dynamics by enabling duty-free access for 93% of Indian exports. In return, luxury cars and wines from the EU will see reduced import tariffs.

A key component of the agreement is its detailed annexure on mediation, facilitating a mutually-agreed solution to trade disputes through an efficient procedure. This outlines the process for requesting mediation, selecting a mediator, and setting the timeline for dispute resolution.

The pact, featuring 20 chapters including digital trade, represents a significant economic partnership, combining one-third of global trade and 25% of the world's GDP. It's a monumental achievement after nearly two decades of negotiations.