EU-India FTA: Carpet Tariffs to be Eliminated by 2027

The Free Trade Agreement signed between the EU and India on January 27, 2026, offers significant relief for the carpet industry. Once the deal takes effect in early 2027, the current tariffs of up to 12% on Indian carpets will be completely abolished. Handmade carpets, in particular, will benefit from immediate duty-free market access, provided they are entirely produced in India. For machine-made carpets, more complex rules of origin apply, requiring significant local value creation. This new regulation is crucial for importers, as India has no longer benefited from the EU's previous general tariff preferences since early 2026. To ensure quality and distinguish genuine handmade goods from machine-made imitations, India also plans to introduce an official state trademark.

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