India finally opens up to French wines: tariffs slashed five-fold, opening up “significant untapped potential for exports”

he free trade agreement signed on January 27 between the European Union and India is described as “historic” in a press statement by the European Commission. Brussels also claims the FTA is “ambitious and commercially significant… the largest such deal ever concluded by either side”, which are respectively “the world’s second and fourth largest economies”. For wines and spirits, over a seven-year timeframe, current tariffs of 150% will drop to 20% for premium wines – selling for over €10 a bottle – 30% for mid-range wines (€2.5-€10) and 40% for spirits. As soon as the agreement enters into force, tariffs will immediately be halved, significantly reducing prohibitive market entry fees.

“The current wine tariff regime, comprising a 150% ad valorem customs duty, constitutes one of the highest globally and severely restricts market access”, emphasises a press statement by CEEV, the Comité Européen des Entreprises Viticoles. Its president, Marzia Varvaglione, points out that “India, with a population exceeding 1.4 billion and a rapidly expanding middle class, offers significant untapped potential for European wine exports”. European wine exports to India currently peak at 7.7 million euros, compared with global revenue of 16.6 billion for European wine exports.

As European wine companies continue to lament the failure to complete the Mercosur agreement and are exposed to uncertainties in the United States and American threats, this long-awaited breakthrough in India is met with a huge sigh of relief. “This is a market we will need to build up over the coming years so that we can reach out to Indian consumers”, stated Gabriel Picard, chairman of the French federation of wine and spirits exporters (FEVS).