EU, India conclude negotiations on largest trade deal
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The European Union (EU) and India have concluded negotiations for their largest trade deal ever, and signed a landmark EU-India Security and Defence Partnership.
Presidents of the EU Commission and the EU Council, Ursula von der Leyen and António Costa, finalized talks on a historic free trade agreement (FTA) during their trip to New Delhi.
Leyen noted that the deal consolidates the relationship between the European bloc and India, building strength through diversification and creating certainty.
The top diplomat described India and Europe as “trusted and reliable strategic partners” that are united in helping businesses thrive, grow, and reduce strategic dependencies.
“We have delivered the mother of all deals. We are creating a market of 2 billion people,” Leyen, Costa, and Indian Prime Minister Modi declared in a joint statement.
The leaders said the decision of the “two giants” to partner in a “true win-win fashion” was a strong message that cooperation is the best answer to global challenges.
The treaty will make trading easier, cheaper, and faster. Tariffs paid by EU exporters will ease by up to €4 billion annually; 90% of EU export tariffs will be eliminated or reduced.
Indian tariffs on wines will soon be cut from 150% to 75%, and to as low as 20% later, while tariffs on olive oil will be reduced from 45% to 0% over five years.
However, to protect sensitive European agricultural sectors, products such as beef, chicken meat, rice, and sugar are excluded from liberalization in the deal.
The agreement also provides protection for the environment and workers’ rights, supports women’s empowerment, and addresses climate issues.
The EU-India Security and Defence Partnership is expected to deepen cooperation on maritime security and advance work on countering cyber and hybrid threats.
