Question Answer
As published in various newspapers India and European Union are trying to finalize a free trade pact. How will this helps India and EU ? Both the parties will be able to export-import goods without tariffs, quotas and preferences on most of the goods and services traded between them. The European Union will have to accept all payments in rupees only whereas India will accept all payments for its exports in Euro only. The Dollar will have no role in this business. Both parties will have to decide the total value of trade between them in advance and will be bound to obey the commitment made thus.
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