EU, India seal historic free trade deal after two decades of talks

The European Union and India have successfully concluded negotiations on a long-anticipated free trade agreement, marking a major milestone after nearly two decades of talks. The deal lays the foundation for a shared market encompassing almost two billion people, making it one of the most significant trade agreements ever reached.

The conclusion of the negotiations was announced in New Delhi by European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi. The agreement aims to substantially reduce tariffs and other trade barriers, thereby accelerating the exchange of goods and services between the two economies. Its stated objectives include fostering economic growth, creating employment opportunities, and reducing strategic dependencies on third countries, Caliber.Az reports, citing foreign media.

Beyond its economic impact, the agreement is widely regarded as geopolitically consequential. It comes at a time of heightened global trade tensions, shaped by aggressive tariff policies pursued by the United States and China’s expanding global influence. In this context, the EU–India accord signals a strategic alignment between two major democratic powers in support of open, rules-based trade.

Speaking at the announcement, Commission President von der Leyen described the agreement as historic, emphasizing that it deepens cooperation between “the world’s largest democracies.” She noted that the creation of a free trade area spanning nearly two billion people would generate substantial economic benefits for both sides, while also demonstrating that multilateral, rules-based cooperation remains effective in addressing global challenges.

Although the agreement is not expected to be as comprehensive as the EU’s free trade pact with the Mercosur countries, it nonetheless ranks among the largest trade deals ever concluded, given the scale and potential of the Indian market.

India, with a population exceeding 1.45 billion, is currently the world’s most populous country, surpassing China. The European Union is home to approximately 450 million people. Together, the EU and India account for nearly a quarter of global GDP and the world’s population.

By Vafa Guliyeva