India to slash EU spirits tariffs to 40%
The European Union (EU) and India have finalised a free trade agreement (FTA) after nearly 20 years of negotiations and stalemates.
Discussions first began back in 2007, but nothing has been agreed until today (27 January).
European Commission president Ursula von der Leyen said: “The EU and India make history today, deepening the partnership between the world’s biggest democracies. We have created a free trade zone of two billion people, with both sides set to gain economically.
“We have sent a signal to the world that rules-based cooperation still delivers great outcomes. And, best of all, this is only the start – we will build on this success, and grow our relationship to be even stronger.”
The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs. Overall, the tariff reductions are predicted to save around €4 billion (US$4.75bn) per year in duties on European products.
EU spirits are currently subject to tariffs of up to 150%. These will be first cut in half, with a gradual reduction to 40% – the same deal India agreed with the UK.
“This agreement is a real game changer for our sector,” said SpiritsEurope director general Mark Titterington. “Cutting tariffs from 150% to 40% will unlock long-term growth, create new jobs across the value chain, and give Indian consumers greater choice through a complementary, rather than competing, offering.
“The deal benefits both sides: a stronger EU presence will support market diversification, boost revenues, attract investment, and generate downstream employment in India, without displacing domestic production.”
According to SpiritsEurope, India is the second-largest spirits market globally by volume, following China, with its consumers drinking more spirits than beer or wine.
The deal also includes the creation of a dedicated EU-India Working Group on Wine and Spirits.
“The EU-India FTA opens a new chapter for spirits trade,” Titterington added. “We look forward to working closely with authorities on both sides to ensure swift implementation. This agreement demonstrates how strong partnerships and open trade can deliver tangible growth and benefits for both economies.”
Related news
Trump threatens further tariffs on UK and EU
Toasts Not Tariffs warns Trump ‘consequences will be severe’
