EU-India Free Trade Deal Signals a New Global Trade Era
The EU and India announced a sweeping free trade agreement that will remove or cut tariffs on 96.6% of EU goods to India and open EU markets to Indian products, with autos a major beneficiary as vehicle tariffs could fall to as little as 10% within a 250,000‑vehicle quota. India gains nearly universal access on machinery, chemicals and pharmaceuticals, while wine, textiles, marine products and other labour‑intensive Indian exports will face tariff reductions in the EU. The deal excludes broader commitments on labour rights and environmental standards and preserves protections for sensitive European sectors like beef and dairy. Seen as a strategic move to diversify away from US protectionism and to signal resilience in a rules-based trading system, the pact also has implications for Australia‑EU negotiations and broader global trade realignment.
