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India–EU Agreement Aims to Simplify Customs, Boost SME Exports Across 27 Nations
The trade agreement between India and the European Union will provide significant business opportunities for the country's small and medium enterprises (SMEs) in 27 European countries.
Small and medium enterprises (SMEs) in our country will have many business opportunities in 27 European countries. After the start of the trade agreement between India and the EU, SMEs will get all the information about business in European countries.
The official document of the trade agreement has been released by India and the EU, and they will implement it as per the official document. The actual implementation of the trade agreement will start later this year or early next year.
According to the document, upon the implementation of the trade agreement, both sides will grant each other Most Favored Nation (MFN) status for five years. This means that neither side can grant significant tariff concessions to any third party or country.
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For example, if the EU imposes a five percent duty on India for the sale of a product, it will not be able to offer a lower duty to any other country. According to the document, India and the EU will create a common digital platform for small and medium enterprises, where both countries will share complete information about business opportunities in their respective countries.
SMEs will not have to pay any fee for accessing information on this portal. They will also be informed about whom they need to contact in the EU to export a product and which EU countries have the required or expected demand for certain items.
E-export between the two countries will also be encouraged. India and the EU have already agreed not to use any physical documents for trading with each other. Customs clearance and other information will also be sent entirely digitally.
However, data security will be fully monitored, and a mechanism will be developed for this purpose. The EU has not granted any concessions to India on the tariffs levied in the EU under the Carbon Border Adjustment Mechanism (CBAM), but the document states that if the EU grants any concessions to any other country, India will also be granted such concessions.
The EU will provide India with technical assistance and funds to reduce carbon emissions. The agreement states that both parties will exclude each other’s sensitive issues from trade. India has not opened its agriculture and dairy sectors to the EU.
