EU and India sign wide-ranging trade deal amid U.S. tariffs

The European Union and India announced a broad free trade agreement after nearly two decades of talks, cutting tariffs on about 97% of European goods entering India and eliminating many EU duties on Indian exports; officials said a formal signing is expected later this year and the deal could take effect by early 2027.

Leaders of the European Union and India announced a wide-ranging trade agreement this week. The talks had been on and off for nearly two decades and accelerated in recent months amid higher U.S. tariffs and global tensions. Officials described the pact as one of the most comprehensive India has signed and said it covers a large share of global trade. Negotiators moved quickly to reach terms while leaving some contentious areas aside. Key points: - The article reports the deal would cut tariffs on nearly 97% of European goods by value imported to India and is expected to double EU exports to India by 2032. - India agreed to reduce duties on cars, with some European auto tariffs falling to 10% from levels that can reach 110% for certain vehicles, and to cut duties on products such as wine, chocolate and olive oil. - The EU would eliminate tariffs on Indian exports including textiles, leather, gems and jewelry, and the agreement includes provisions for easier access for highly skilled Indian professionals to work in Europe. - Leaders including Prime Minister Narendra Modi and European Commission President Ursula von der Leyen characterized the pact as very large and strategically important; von der Leyen said it would help reduce strategic dependencies as trade becomes more politicized. - The agreement does not include expanded access to India’s agricultural and dairy sectors, which remained unresolved. - Officials said a formal signing is planned later this year and, after legal vetting, the deal could come into effect by early 2027. Summary: The deal opens parts of India’s protected market to European goods while granting the EU tariff-free access to a range of Indian exports. It was accelerated by recent U.S. tariff measures and shifting geopolitical ties, and officials report a signing is expected later this year with possible entry into force by early 2027.