Story perspectives

EU Sends India Free-Trade Draft to Council

By Drooid · Sep 14, 2026, 10:56 AM UTC · How we work

Summary

Story summary

The European Commission forwarded a free-trade agreement proposal with India to the European Council on 14 September 2026.
The draft lowers in-quota duties on European cars, reaching 10% by year 5 across price bands.
Electric-vehicle concessions start in year 5 for €20,000+ models, with quotas increasing from 20,000 to 90,000 units by year 14.
India receives an annual steel export quota of 1.64 million tonnes to the EU, including 694,853 tonnes under the FTA component.

History

Historical Context

In 2019, the European Union concluded the Comprehensive Economic and Trade Agreement (CETA) with Canada, eliminating 98% of tariffs. The European Commission reported that CETA generated €12 billion in additional EU exports within two years, driven largely by automotive sectors. Similarly, the 2026 EU-India free-trade draft lowers car duties to 10% by year 5 and grants India 1.64 million tonnes of steel quota. If the agreement mirrors CETA’s boost, EU manufacturers could increase EV exports while India secures market access, reshaping trans-continental trade flows.

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Story summary

The European Commission forwarded a free-trade agreement proposal with India to the European Council on 14 September 2026.
The draft lowers in-quota duties on European cars, reaching 10% by year 5 across price bands.
Electric-vehicle concessions start in year 5 for €20,000+ models, with quotas increasing from 20,000 to 90,000 units by year 14.
India receives an annual steel export quota of 1.64 million tonnes to the EU, including 694,853 tonnes under the FTA component.

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