EU and India conclude landmark Free Trade Agreement

The European Union and India have concluded negotiations on a landmark free trade agreement, the largest ever signed by either side, aimed at strengthening economic and political ties between the world’s second- and fourth-largest economies amid rising geopolitical and economic pressures.

Global signal in support of cooperation

EU Commission President Ursula von der Leyen said the agreement creates a free trade zone of 2 billion people and sends a global signal in support of rules-based cooperation. The EU and India currently trade more than €180 billion in goods and services annually, supporting nearly 800,000 EU jobs. The deal is expected to double EU goods exports to India by 2032 by cutting or eliminating tariffs on 96.6% of EU exports, saving European companies around €4 billion a year.

Granting the EU preferential access

India has offered its most ambitious trade concessions to date, granting the EU preferential access to its market of 1.45 billion people. Tariffs on cars will be reduced from 110% to as low as 10%, while duties on car parts, machinery, chemicals, pharmaceuticals and many agri-food products will be largely eliminated. Sensitive EU agricultural sectors such as beef, rice and sugar are excluded, and EU food safety standards will remain in place.

EU and India are negotiating separate agreements

The agreement also improves access for EU service providers, strengthens intellectual property protection, supports small and medium-sized enterprises, and includes binding commitments on sustainability, labor rights and climate action. In parallel, the EU and India are negotiating separate agreements on geographical indications and investment protection.

The draft text will now undergo legal review and approval procedures on both sides before ratification and entry into force.

Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_184