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Position paper – EU-India trade negotiations

ACEA | 10 March 2023

Position paper – EU-India trade negotiations

ACEA welcomes the relaunch of negotiations for a free trade agreement (FTA) with India. Likewise, the opening of negotiations for an investment protection agreement is a positive step towards the EU’s objective of strengthening its relationship with India.

While India is one of the most important automobile markets in the world, trade with the EU is heavily underexploited due to prohibitively high tariffs, significant non-tariff barriers, substantial regulatory divergence and oppressive domestic taxes.

It is imperative that all types of motor vehicles (tariff headings 8701–8705) and automobile parts (in particular, tariff headings 8407–8409, 8507, 8706, and 8708) benefit from all of the elements of the agreement. Completely built-up units (CBUs) should not be excluded from the scope of a final deal between both parties.

ACEA calls for a comprehensive trade agreement with India that provides significant market access for the EU automotive industry and strives for the high standards achieved in recent FTA negotiations with other countries.

This paper sets out ACEA’s key requests for an agreement between the EU and India to address the following elements:

  1. Tariff barriers to trade
  2. Rules of origin
  3. Non-tariff barriers to trade
  4. Domestic taxes
  5. Protection of investments


 Fuente: ACEA