We are living tough and uncertain times. Traditional peace-keeping frameworks are put in danger by America. The USA is waging a destructive trade war against almost everyone, something that will make life more expensive for Americans and business harder for everyone.
So, it is great to see that others have a more intelligent and constructive approach.
The EU and India has just signed a trade agreement that includes wine, cars, machinery and many other products. India has traditionally been a quite closed and protected market, with little wine imports. When tariffs are 150% this is not surprising. The agreement means that tariffs on wine in time will come down to 20%.
Although the trade agreement is primarily focussed on other industries, this change can in time mean that India can develop as an important export market for European producers.
India is today the world’s most populous country but according to Meninger’s they only drink 0.03 litre wine per person.
“This is the most comprehensive trade deal India has ever signed, which gives European companies a first mover advantage into this market and gives them a strategic upper hand that other players do not,” said Garima Mohan, of German Marshall Fund to AP News.
It is even positive, in my opinion, for the domestic Indian wine sector since this opening can lead to a dramatically increased demand for wine, including domestic.
What do you think?
When the whole world, including the US, is suffering from United State’s predatory and destructive trade policies, it is heartening to see that others move in a constructive direction.
Read more: APNews
