EU and India agree landmark free-trade and security pact
After nearly 20 years of talks the EU and India concluded a broad agreement that cuts tariffs on most goods, expands services and student mobility, and establishes a defense partnership, with formal signing subject to legal vetting and EU ratification.
- Negotiations ended after almost two decades and the text will undergo about six months of legal vetting before formal signing and European Parliament ratification.
- India agreed to eliminate or cut tariffs on 96.6% of EU shipments and the EU agreed to eliminate or cut tariffs on 99.5% of Indian goods over seven years.
- The deal includes a quota for up to 250,000 European-made vehicles at preferential duties and is expected to double EU goods exports to India by 2032.
- Concessions cover 144 services sectors and include binding commitments on student mobility and post-study visas while India excluded its dairy sector.
- The agreement also creates a defense partnership for joint development, information sharing and closer Indian Ocean cooperation as both sides diversify ties amid global trade tensions