India Gains Trade Edge in Turkiye via EU FTA: GTRI

New Delhi, Jan 29 (PTI) India has received a small unintended bonus from its free trade agreement with the European Union (EU), as Indian goods can enter Turkiye with duty concessions, while Turkish products cannot use the pact to export to India, think tank GTRI said on Thursday.

The European Union and Turkiye are linked by a customs union covering most industrial goods and processed agricultural products.

These goods move freely between the EU and Turkiye without tariffs or quotas, and Turkey applies the EU's common external tariff on imports from third countries, the Global Trade Research Initiative (GTRI) said.

"As a result, when Indian goods enter the EU under the India–EU FTA, they can then move onward into Turkiye without additional tariffs. In effect, Indian exports gain indirect access to the Turkish market via the EU," it said adding the reverse does not apply.

Turkish goods cannot use the India–EU FTA to enter India duty-free, even if they pass through EU ports, it said.


Under the pact's rules of origin, only EU-origin goods qualify for preferential access, and Turkiye is not a party to the agreement, it added.

India's relations with Turkiye came under strain due to Ankara backing Islamabad and condemning India's strikes on terror camps in Pakistan in May under Operation Sindoor.

India and the EU on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA). It is expected to be signed and implemented this year itself.

"India goods can enter Turkiye duty free via the EU using the FTA route but Turkish Goods cannot use the India–EU FTA route and must pay an applicable Indian tariff for entering India," GTRI Founder Ajay Srivastava said. PTI RR RR DR

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