Historic Free Trade Agreement between the European Union and India

The European Union (EU) and India have concluded negotiations for a "historic, ambitious, and commercially significant" free trade agreement (FTA), according to a statement from the European Commission.

This agreement, the European institution notes, is the largest of its kind ever concluded by both parties and will serve to strengthen economic and political ties between the world's second and fourth largest economies.

Ursula von der Leyen, President of the European Commission, stated that "the EU and India are making history today, deepening the partnership between the world's two largest democracies. We have created a free trade area of ​​two billion people, with both sides poised to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great results." The FTA is the most ambitious trade opening that India has ever granted to a trading partner. It will give a significant competitive advantage to key EU industrial and agri-food sectors, which will enjoy privileged access to the world's most populous country, with 1.45 billion people and a large, rapidly growing economy.

European Commissioner for Agriculture and Food, Christophe Hansen, stated that "until now, our agri-food exports to India have been hampered by extremely high tariffs. Under this agreement, European wines, spirits, beers, olive oil, confectionery, and other products will enjoy preferential access to the rapidly growing Indian market. (...) As with any trade agreement, our high food safety standards remain fully in place. The safety of EU consumers is non-negotiable." Sensitive European agricultural sectors will be fully protected, as products such as beef, chicken, rice, and sugar are excluded from the liberalization under the agreement. All Indian imports will still have to comply with the EU’s strict health and food safety standards.

Small EU businesses will also be supported in taking advantage of these new opportunities: both sides will establish dedicated contact points to provide information to SMEs.

Read the news on the European Commission’s website