The European Union accelerated conversations with India to request tariff reduction after Donald Trump’s announcement to apply tariffs to European cars. It would benefit great automakers such as Volkswagen, Mercedes-Benz and BMW.
The European Union wants India to eliminate tariffs On cars imports within the framework of a commercial agreement pending for a long time and the government of the Prime Minister, Narendra Modi, is willing to improve his current proposal to seal the conversations, sources told Reuters.
India is open to the gradual reduction of 10% tariffs from more than 100%, two industry sources and a government representative said. This despite the pressures of the sector so that India maintains at least one tariff of 30%, although it begins to reduce tax, and not to modify tariffs on the import of electric vehicles for four more years in order to protect national operators.
The trouble in the negotiations appears after Donald Trump’s announcement to apply tariffs to European cars
EU requests They arrive weeks after the government of the US president, Donald Trump, seek a similar elimination of car import tariffsincluding electric vehicles, as part of bilateral commercial conversations with India, which accumulates pressure on national car manufacturers. Tariff cuts They will be a victory for European car manufacturers such as Volkswagen, Mercedes-Benz and BMW, which would expand their access to India. It could also be a victory for Tesla, by Elon Musk, which will start selling imported electric vehicles in India this year, probably from its Berlin plant.
“The EU has returned asking for a better and India agreement wants to make a better offer,” said one of the industry sources.
The Indian Ministry of Commerce transmitted the demands of the EU and the position of India to those responsible for the Ministry of Heavy Industries and representatives of the automobile industry at a meeting last week, the three sources said.
The sources, knowledgeable about the conversations, spoke on condition of anonymity because the negotiations are ongoing and are private. The European Commission did not want to make specific comments, but shared a summary of its last round of conversations with India in March.
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“In many key areas, The EU and India have different approaches and objectives. (…) This translates, in some cases, at different levels of ambition, “said Olof Gill, spokesman for the commission in a statement.
The Indian Ministry of Commerce and the Society of Automobile Manufacturers of India (SIAM), which represents the main manufacturers of the third world car market, did not respond to the emails in which they were asked for comments. (Information from Aditi Shah and Shivangi Acharya in New Delhi; Kate Mayberry edition; María Bayarri Cárdenas Spanish edition)
Source: Ambito
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