The European Free Trade Association (EFTA) has signed a trade agreement that has been hailed by the alcohol sector. They claim that the agreement would provide easier access to premium wines from EFTA members without having a negative impact on the home wine business.
According to the agreement, custom duty on wine priced between $5 and $15 would be reduced by up to 50% over the course of ten years.
“The India-EFTA trade deal will help in providing easier access to high quality wines from EFTA countries without negatively affecting the domestic wine industry by ensuring that the concessions cut off remains above the lower price segments where most of the domestic industry operates,” stated Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC). By exposing the home business to high-quality wines and potential investments, the arrangement will also help it improve even further in terms of quality.
He said that the 10-year period for a phased-in decrease of customs taxes is sufficient to support local industry in improving its competitiveness and product quality to the highest standards. The Federation of Indian Export Organizations (FIEO) CEO and DG, Ajay Sahay, believes it’s a wise decision since local players’ interests have been taken into consideration and the concession will not exceed 50%.
Iceland, Liechtenstein, Norway, and Switzerland are members of the European Free Trade Association (EFTA).
Piyush Goyal, the Union Minister for Commerce and Industry, signs the Trade and Economic Partnership Agreement between India and the European Free Trade Association (EFTA) in New Delhi on Sunday, March 10, 2024.
EFTA and India ink trade agreement to boost exports