00:00We delivered the mother of all deals.
00:05We are creating a market of two billion people, and this is the
00:10scale of two giants, and by combining these strengths, we
00:15reduce strategic dependencies at a time when trade is increasingly
00:20weaponized.
00:21Oh, well, Bloomberg's chief, you're a
00:25correspondent.
00:26Oliver Crook now joins us.
00:27Ollie, what do we know about the contents of the agreement?
00:30Well, you heard it there from Ursula von der Leyen, the mother of all
00:33deals, and the EU really trying to
00:35take a victory lap about this in terms of how much market access this
00:38grants European companies because, of course,
00:40India is notoriously one of the nations with very, very, very
00:43elevated trade barriers.
00:45And this goes some distance in reducing them.
00:47So if we look at the actual numbers of what this will hopefully
00:50deliver, according to the EU, it will eliminate or reduce tariffs on
00:5396.6% of the
00:55EU goods exported to India.
00:56The EU in turn will eliminate or reduce tariffs on 99.6% of the
01:000.5%.
01:01We should say that that figure is a little bit misleading because it
01:03is certainly going to reduce
01:05some of them and remove some of them.
01:06But again, when you're reducing barriers from 150%
01:10that does not necessarily eliminate them.
01:12The EU claims that it's going to double EU good exports to India.
01:15by 2032.
01:16And I'll just go through a sort of snapshot of some of the things as
01:19targets for the Europeans.
01:20So car tariffs are at about 110% at their highest level.
01:23Those can go as low as 10%
01:25they're going to abolish tariffs on car parts, machineries at 44%,
01:29chemicals at 20%
01:3022%, pharma at 11%.
01:31Those will be mostly eliminated.
01:33We also are very concerned
01:35and concentrating on the farmers and of course agriculture.
01:38The average tariffs on agriculture go
01:40going into India are over 36%.
01:42Those will come down.
01:43Wine, something for France.
01:45They're 150% down to 75%.
01:48Eventually 20% olive oil, something for
01:50Italy, down from 45% to 0% over time.
01:54That being said, of course
01:55one of the big concerns for the European farmers is that their own
01:58sort of produce and their own products are
02:00protected within Europe.
02:01And there are provisions for that within this agreement.
02:03For example, beef, chicken, rice,
02:05sugar are all excluded from this trade agreement.
02:08And of course all this sort of health and safety standards for
02:10food products will also have to be maintained from the European level.
02:13So again, the idea with many
02:15of these tariffs, they will not go into effect on day one.
02:17They will go into effect over a progressive period of time.
02:20Sometimes five years, sometimes ten years.
02:21This still needs to clear the hurdle of the European Council,
02:24European Parliament.
02:25and some other sort of legal amendments.
02:27But again, this is for the Europeans a major step forward.
02:30And again, a major signal to the President of the United States that
02:32basically multilateralism is not dead.
02:34And if you
02:35you cannot trade with the United States.
02:36You're going to have to go and trade elsewhere.
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