India-EU trade deal could significantly ease market access: Estonia envoy

New Delhi, October 21 (IANS) The proposed India-European Union Free Trade Agreement (FTA) could reduce both tariff and non-tariff barriers, creating new opportunities for businesses on both sides, Estonia's Ambassador to India Kristi Karelsohn said on Wednesday, expressing hope that the agreement will be signed by leaders before the end of the year.

Speaking to IANS on the state of ties between the two countries, Karelsohn said India-Estonia relations are in "excellent shape" and are entering a particularly exciting phase, aided by deeper engagement between India and the European Union.

"We hope the agreement will be signed by the leaders of India and the European Union by the end of this year. It is expected to reduce existing customs tariffs, as well as non-tariff barriers that pose significant challenges for smaller companies, such as those in Estonia," she stated.

The envoy said the proposed India-EU FTA has the potential to substantially improve business opportunities by lowering customs duties and addressing non-tariff barriers that often pose challenges for companies seeking access to foreign markets.

"It is not just about tariffs. Customs procedures, certification requirements and other regulatory hurdles can be particularly difficult for smaller companies," Karelsohn said.

While noting that Estonia is a relatively small economy with a limited manufacturing base, the ambassador said there is strong potential for cooperation in sectors such as digital services, technology and cybersecurity, where Estonian companies have developed global expertise.

"We have recently seen India's growing ambition to play a greater role in the world and in global organisations. I think this ambition needs to be supported because the international organisations and structures we see today were established a long time ago, in a very different era. Circumstances have changed, and we fully understand and support India's ambition to play a greater role. We would definitely like to see large democratic countries like India have a stronger voice on various issues and across different fields in the global arena," she noted.