Tariffs drop, nets even: With India-EU FTA, India’s seafood exports square off against Ecuador, Viet

As India and the European Union (EU) finalised the free trade agreement (FTA) on Tuesday, a wave of celebration was witnessed across sectors in both regions. One of the biggest beneficiaries of this FTA, touted as the “Mother of all deals”, is expected to be the marine and seafood industry. Currently, India’s seafood and shrimp sector is facing headwinds due to a 50% tariff imposed by the US, its top export destination, and strong competition from countries like Ecuador, Vietnam and Indonesia. 

However, the FTA will now position India on the same level in the EU as its competitors, with tariffs going down to zero from 26% earlier.

Divya Kumar Gulati, Chairman of CLFMA (Compound Livestock Feed Manufacturers Association) of India, said that with the FTA cutting up to 26% tariffs on Indian shrimp/fish exports to zero, Indian seafood will become significantly more price-competitive in the EU market - currently worth tens of billions of dollars in seafood imports.

Adding to this, Gyanendra Tripathi, Partner & Leader - Indirect Tax: North & West, Tax & Regulatory Advisory, BDO India, said, “The reduction in duty rates on various other ingredients would also help Indian exporters to be more competitive by making the imported ingredients more cost-effective, improving their margins and also enabling them to introduce new products, using the imported ingredients, which are more palatable to the taste buds of European consumers, which could potentially further improve the market share of Made in India products in the EU.”

Source:  Economic Times