Delhi [India], September 11 (ANI): Hailing the landmark India-EU FTA  moving 'one step closer to the finish line", European Ambassador designate to India and Bhutan Jean-Eric Paquet on Friday said that the proposal is a "bold leap for two economic powerhouses". The ambassador-designate's comment comes shortly after the European Commission presented the agreement for approval to the EU council, as he said that the agreement has cleared its path for early approval. 

"Fantastic news! FTA just moved one step closer to the finish line! @EU_Commission has sent its proposal to @EUCouncil, clearing the path for early approval; while the full text is now public," Ambassador-designate Paquet posted on X. 

Sharing the text of the proposed text in his post, he added that the proposal "is not just another agreement. It's a bold leap for two economic powerhouses!"

Once enacted, the agreement will remove or reduce tariffs on 96 per cent of EU goods exports entering India, saving European exporters roughly EUR 4 billion annually in customs duties. The pact is structured to expand reciprocal market access, eliminate unnecessary trade barriers, and establish predictable regulatory standards. 

Under the draft text of the FTA, it aims to "progressively and mutually liberalise trade in goods in accordance with the provisions of the agreement." According to Article 2.4 of the agreement, each side (both India and European Union) shall "accord national treatment of the goods of the other party in accordance with the Article 3 of the GATT 1994."

The EU and India started negotiating an FTA in 2007. The talks were suspended in 2013 and relaunched in 2022, and the negotiations were successfully concluded in January 2026. 

Alongside the free trade agreement, the EU and India are also negotiating agreements on geographical indications and investment protection. The FTA is expected to come into force by later this year or in the first half of 2027.

Under the established ratification process, the Commission requires authorisation from the Council, followed by the formal consent of the European Parliament, before the agreement can be concluded and enter into force. Indian authorities are simultaneously advancing their own domestic ratification procedures.

The submission marks a major step toward enabling businesses and consumers to tap into the agreement without delay. This step follows a fast-track procedure introduced earlier this year by European Commissioner for Trade and Economic Security Maro efovi.

At present, bilateral trade in goods and services exceeds EUR 180 billion annually, underpinning nearly 800,000 jobs across the European bloc.

The agreement strengthens economic connections with a critical partner in the Indo-Pacific. India ranks as the EU's ninth-largest trading partner in goods, with bilateral merchandise trade reaching EUR 118 billion in 2025. Machinery, transport equipment, and chemicals form the bulk of EU exports to India, while Indian shipments to Europe primarily feature machinery, chemicals, textiles, metals, and refined petroleum products.

Trade in services between the two economies reached EUR 67 billion in 2025, with EU service imports standing at EUR 37.8 billion and exports at EUR 29.2 billion. (ANI)