EU and India seal long-awaited trade deal

"The EU and India make history today, deepening the partnership between the world's biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great outcomes. And, best of all, this is only the start - we will build on this success, and grow our relationship to be even stronger," European Commission President, Ursula von der Leyen says

Details

According to the EU, the agreement will reduce or eliminate tariffs on nearly 97% of European exports. This will save up to $4.75 billion per year in tariffs. The agreement will primarily benefit agriculture, automotive manufacturing, and the service sector.

For example, tariffs on cars from the EU will gradually decrease from 110% to 10%, and tariffs on auto parts will be eliminated in five to ten years.

Tariffs on wines from the European Union will be reduced from 150% to 75%, and tariffs on olive oil from 45% to 0%. Indian tariffs on processed products such as pasta and chocolate will also be completely abolished.

When will the agreement be signed?

The official signing of the agreement between India and the EU will take place after a legal review, which is expected to take five to six months.

Negotiations on a trade agreement between India and the EU have repeatedly reached an impasse and were suspended in 2013. In 2022, discussions resumed due to the situation in world trade, which was affected by the hostilities in Ukraine and the policies of US President Donald Trump. It is noted that in 2025, trade between India and the EU reached $136.5 billion.

Earlier, US Treasury Secretary Scott Bessent said that the EU was financing a war against itself by signing a trade agreement with India.

He said that oil from Russia was being shipped to India, then exported from there and sold to EU countries.