India and EU Finalise Landmark Free Trade Deal After 18 Years, Amid US Tariff Pressure
Wendy Wright Economy
India and the European Union have concluded negotiations on a landmark free trade agreement (FTA), marking the end of an 18-year negotiation process. The deal aims to leverage the complementary strengths of the two economies—combining India's scale and services with Europe's technology and capital—to foster growth and reduce strategic dependencies in an era where trade is increasingly used as a geopolitical tool.
As explained in an analysis by Greg Simons for RT, the finalised agreement is set to significantly reduce tariffs on a wide range of goods. The EU will slash duties on Indian exports such as textiles, garments, pharmaceuticals, and machinery. In return, New Delhi is expected to dramatically lower levies on European-made automobiles, a key EU export. Additionally, the agreement includes a major €500 million bilateral platform dedicated to cooperation on climate change initiatives.
Analysts note that the timing of the breakthrough is significant, as both India and the EU face escalating tariff pressures from the United States. This external economic pressure is seen as a catalyst that helped push the long-stalled negotiations across the finish line, providing both parties with greater leverage and an alternative trade framework. However, the professor noted in the video that the deal is not yet fully operational; it must undergo several months of legal scrutiny and then be ratified by various legislative bodies within the EU and India, with implementation not expected until early 2027.
The agreement represents a major strategic shift, aiming to create one of the world's largest free trade areas by linking the EU's single market with the world's most populous nation. While it promises enhanced market access and economic cooperation, its full impact will depend on the final ratification process and the evolving dynamics of global trade relations.
Source: India–EU free trade deal explained | Greg Simons (Video: https://rumble.com/v74yxdc-indiaeu-free-trade-deal-explained-greg-simons.html)
