The European Union and India concluded negotiations on a comprehensive free trade agreement January 27. India will progressively eliminate or reduce tariffs on 96.6 percent of EU exports.
Current Indian tariffs include 110 percent on cars, up to 44 percent on machinery and electrical equipment, up to 22 percent on chemicals and iron and steel, 11 percent on pharmaceuticals, and up to 11 percent on aircraft and spacecraft.
The agreement now advances through internal approval procedures in both the EU and India. No timeline was provided for ratification.
European Commission President Ursula von der Leyen called it the “mother of all deals.”
The EU signed a trade pact with Mercosur on January 17 covering 700 million people. The EU-India agreement covers approximately 2 billion people. Both deals eliminate tariffs on more than 90 percent of bilateral trade.
The European Commission has stated that recent trade agreements respond to “business lost to US tariffs” and efforts to reduce dependence on both the United States and China.
January 2026: EU concluded India trade negotiations. EU signed Mercosur agreement. Britain, South Korea, Canada, and Finland sent leaders to Beijing for China trade talks. Germany’s chancellor visits Beijing next month.
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