Cars imported from the European Union could be available at prices just a tad bit higher than those in Europe. A free trade agreement to this effect is under negotiation between the Indian government and the EU, under which the government will charge a 10% duty on 2.5 lakh cars imported from the EU, instead of the normal 60%. This will be done for a fixed quota of cars for five years, at the end of which the situation will be reviewed. Under the proposal 40,000 cars will be imported during the first year and this number would rise by 5,000 cars each year for the next four years. The government will review the situation at the end of five years, and decide whether to extend the programme further. Another proposal being considered is to reduce the import tariff from 60% to 30% for cars outside the quota once the free trade is implemented.