Ireland to gain from EU-India trade agreement- MEP Kelly

Seán Kelly MEP, a Member of the European Parliament’s Delegation for relations with India, has welcomed confirmation of the EU-India Free Trade Agreement (FTA) and Joint India-European Union Comprehensive Strategic Agenda as having “huge potential for Ireland, the EU, and India”. The FTA creates a market of around 2 billion people representing almost a quarter of the world’s GDP, while a new security and defence partnership has also been agreed. Mr Kelly said the deal comes at a time when the EU needs reliable global partners more than ever.

“In terms of trade, the current geopolitical outlook makes diversifying our partners and supply chains a top priority. India is the third largest economy in the world, and the EU is already its biggest trading partner. Ireland and India already have a fantastic and growing economic relationship, with trade doubling in the last five years to €16bn annually, with Ireland in a trade surplus,” said Kelly, the Leader of Fine Gael in the European Parliament.

The EU-India Free trade Agreement would substantially deepen this relationship, potentially slashing €4 billion in duties and double its exports to India by 2032. However, certain agri-food products (such as beef, chicken, rice and sugar) are excluded from the deal while other sectors will greatly benefit from tariff-relief.

“The agreement marks a major step forward in EU–India economic relations and by removing tariffs on over 90% of EU exports, will deliver significant new opportunities for European businesses and workers. The deal gives EU exporters the most ambitious trade opening India has ever offered a partner. It also simplifies customs procedures, strengthens protection for EU intellectual property, and includes a dedicated chapter to help our small businesses compete and succeed in the Indian market”, the Ireland South MEP said.

“Given the current volatility of global trading relationships, it is vital that the EU takes a balanced approach and forges new partnerships which also promotes its democratic values. However, it cannot come at any cost. I was pleased to see, as part of the launch of the Strategic Agenda, the EU’s top diplomat Kaja Kallas call out India’s current regrettable position towards the war in Ukraine, and how this is not acceptable from an EU standpoint. Europe must remain firm on this point and utilise this enhanced cooperation and dialogue between the EU and India as a means to steer the Indian position away from where it currently stands on things like the purchase of Russian gas”, Kelly stressed.

“I look forward to analysing the EU-India agreement in detail. The European Parliament must approve the deal before it can come into force and a plenary vote is expected later this year”, Kelly added.