EU and India sign landmark trade agreement

The European Union and India concluded long-running talks and signed a broad trade agreement together with separate mobility, security and defence pacts. The accord aims to cut tariffs on cars and other EU goods and still needs ratification by member states and the European Parliament.

The European Union and India concluded trade talks and signed a broad agreement alongside separate deals on mobility, security and defence. The pact aims to open parts of India's protected market and reduce tariffs on a range of EU goods. India has agreed to lower car tariffs to 10% over five years from levels reported as high as 110%. EU officials described the arrangement as an unusually large trade opening for India. Key points: - The agreement covers goods and services and is accompanied by separate mobility, security and defence accords. - India is reported to cut tariffs on cars to 10% over five years from levels cited as high as 110%. - Tariff reductions are also planned for machinery, electrical equipment, chemicals, and iron and steel, according to the EU. - The EU says annual trade with India is already over €180bn and supports close to 800,000 EU jobs; it expects goods exports to India to double by 2032. - The deal still requires ratification by EU member states and the European Parliament before it takes effect. Summary: The agreement is presented by both sides as a major expansion of economic ties after nearly two decades of negotiations and is framed as strengthening relations between two large democracies. Ratification by national governments and the European Parliament is the next formal step, and the treaty's wider geopolitical significance was noted amid the EU's push to diversify trade partnerships. Undetermined at this time.