Free trade agreements (FTAs) help countries export more outside their borders, gain better access to raw materials and vital components, and compete more successfully in the global marketplace. For India and European Union member states, the EU-India FTA faces a tough uphill battle. However, once that battle is overcome, the FTA will increase trade and opportunity between the two powerful regions.
India is an important sales market for Europe; with a population of 1.3 billion it is the fastest growing economy in the world and a key supplier of a wide range of goods and services for many EU partners. Germany, ahead of India’s Prime Minister’s visit to Europe in late May, made a strong pitch for resuming negotiations for the EU-India FTA. Germany is one of many countries that India terminated its bilateral investment protection treaties (BITs) with, following the country’s release of a new BIT model in December 2015.
If the new FTA is finalized, it will help both sides boost trade, create jobs, increase economic growth, and initiate new business opportunities. Companies need to prepare for the complex compliance processes that an FTA will bring when moving goods across these borders.