On the export duty front, experts said this will ensure that India does not export duties on energy and raw mineral goods. “If a Party intends to introduce a new or increase the level of existing duty, tax or other charges on, or in connection with, the exportation of a good, it shall notify the other Party as soon as practicable and, in any event, immediately after the adoption of any new measure,” it said.
ET had reported in December that the EU didn’t want India to restrict any critical mineral exports using duties but the chapter was dropped.
“Every time a new export duty is introduced or increased, India will have to notify the EU as soon as possible and the EU can then ask for information to examine the impact on India-EU trade. Then it can also initiate consultations with India to address adverse effects on trade, contest it with you on a G2G basis and ask for adjustments,” said an expert. The annexure on “model mediation procedures” also details a pre-established list of mediators and states that the mediator “shall not be a national of either Party or employed by either Party, unless the Parties agree otherwise”.
“A party may at any time request to enter into a mediation procedure with respect to any measure by a Party alleged to adversely affect trade between the Parties,” according to the text of the FTA which has included an annexure for mediation for a mutually-agreed solution to a dispute through an expeditious procedure with the assistance of a mediator. There are 20 chapters and 14 annexes in the agreement.