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India-EU Trade Pact: Mediation for Disputes
28 Feb
Summary
- A new India-EU free trade agreement includes mediation procedures for trade disputes.
- Either party can request mediation if a measure adversely affects trade.
- The agreement aims for 93% duty-free access for Indian shipments to the EU.
A newly concluded free trade agreement between India and the European Union incorporates a comprehensive annex detailing model mediation procedures. This mechanism is designed to expedite the resolution of trade disputes that may arise between the two parties.
Either the European Union or India can formally request to enter into a mediation procedure. This request must clearly identify any measure alleged to adversely affect trade between the blocs. For the mediation process to begin, both parties must mutually agree to it. The agreement stipulates that parties shall endeavor to reach a solution within 60 days of appointing a mediator.
This landmark pact is set to significantly boost trade, with 93% of Indian shipments gaining duty-free access to the 27-nation EU bloc. Concurrently, tariffs on luxury cars and wines imported from the EU into India will see a reduction. The agreement, comprising 20 chapters including one on digital trade, represents a significant step in strengthening economic ties between India and the EU.
