EU-India FTA: Boon For European Carmakers

India and the European Union moved a step closer to a proposed free trade agreement (FTA) after the two parties reached a consensus on the touchy issue of import duties on automobiles on December 30. The new agreement broadly envisages a reduction in duties for auto imports from both sides in a way which will improve market access for both Europe- and India-based carmakers. Although the final details are likely to be set out in February 2012, BMI believes that the current blueprint looks more favourable for European and EU-based foreign carmakers than their Indian counterparts.

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