The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid geopolitical tensions with the US.
India's Commerce Secretary Rajesh Agarwal confirmed on Monday that negotiations had concluded and the deal is finalized. European Commission President Ursula von der Leyen and European Council President António Costa are currently in Delhi for the expected announcement.
Both India and the EU are keen to enhance their strategic and trade relationships globally while facing economic pressures from the US. India, in particular, is enduring 50% tariffs imposed by former President Donald Trump last year.
This deal is framed as a vital political statement reflecting the commitment of both India and the EU towards trade over protectionism at a time when various countries are increasing tariffs, as Costa indicated during recent statements.
Von der Leyen reiterated that Europe and India aim to collaborate in shaping a new global order. The announcement comes as both leaders were honored guests at India's vibrant Republic Day celebrations.
The deal will reportedly facilitate market access for Indian exports to Europe while easing the entry for European goods, including cars and beverages, into the Indian market. Prime Minister Modi emphasized that this agreement embodies the cooperation of two significant global economies, representing 25% of the world's GDP and a third of global trade.
This trade agreement builds upon earlier discussions that began in 2007, which stalled in 2013 due to market access and regulatory issues. With renewed talks since July 2022, final details have been ironed out ahead of the EU leaders’ visit.
The upcoming announcement aligns with India's efforts to diversify its trade relations, having recently signed agreements with countries like the UK, Oman, and New Zealand. The EU, for its part, aims to solidify its own standing in global trade through new collaborations.
