India-EU Free Trade Agreement, concessional routes closed for Türkiye, Ankara will not be able to take advantage of FTA

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News India Live, Digital Desk: The historic Free Trade Agreement (FTA) concluded between India and the European Union (EU) on January 27 is being called the ‘Mother of All Deals’ globally. While this agreement is the beginning of a new era in the economic relations between India and Europe, it has proved to be a big blow for Turkey. A senior official source has made it clear that Turkey will not be able to take advantage of the tariff concessions of this FTA citing its Customs Union relations with the EU. Why is the “No Entry” board put up for Turkey? Turkey has been a member of the EU-Turkey Customs Union since 1996. According to the rules: Unilateral pressure: When the EU reduces tariffs with a country (like India), Turkey also has to reduce its tariffs for Indian goods. That means Indian goods will be sold cheaper in Türkiye. India’s tough stance: But India has made it clear that this agreement is only for EU member countries. Even if goods of Turkish origin are sent to India from European ports, full import duty will be charged on it. It will not get the exemptions under the FTA. Diplomatic Tension: Pakistan and the ‘Drone’ Angle. The roots of this bitterness in the trade relations between India and Turkey are political: Pakistan’s blind support: Turkey’s inclination towards Pakistan on the Kashmir issue and international forums has been a matter of concern for India. Military opposition: Turkey had strongly condemned the action (Operation Vermillion) taken by India on terrorist camps in Pakistan in May last year. Drones Supply: India’s security interests have been affected by Turkey’s supply of sophisticated drones to Pakistan, the impact of which is now visible on trade decisions. Huge decline in trade figures (FY 2024-25) The impact of diplomatic tension is now clearly visible on trade transactions between the two countries: Details FY 2023-24 FY 2024-25 Decline (%) Indian exports $6.65 Billion$5.71 Billion14.1%Indian Imports$3.78 Billion (Approx)$3.00 Billion20.8%Turkey’s share in India’s total exports has now shrunk to just 1.3%.What happens to the trade between the two countries?Despite the decline, exchange of some major commodities continues:India to Turkey: Fuel, oil, electrical machinery, auto parts, pharma products and iron and steel.Turkey to India: Marble (marble), fresh apples, vegetables, gold, cement and mineral oil.

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