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EU-India Close to Historic Free Trade Agreement

Published January 23, 2026, 18:17

European Council President Antonio Costa and European Commission President Ursula von der Leyen are in New Delhi for the 16th EU-India Summit, hosted by Indian Prime Minister Narendra Modi. They will also attend the celebrations for India's 77th Republic Day. The main focus of the summit is the completion of the EU-India free trade agreement, which began in 2007, was stalled for nine years, and resumed in 2022. Negotiations are at an advanced stage, with a possible official announcement of the agreement on January 27th. However, issues remain open in areas such as fisheries (particularly seabass), industrial tariffs, and the inclusion of Geographical Indication products. The agreement is expected to create a single market of almost 2 billion people and reduce tariffs for European exporters by up to €4 billion annually. It will also facilitate access for Indian products, such as textiles, electronics, and jewelry, to the European market. In return, India is expected to gradually reduce tariffs on European products, especially cars and alcoholic beverages. Beyond trade, leaders will adopt a new comprehensive EU-India strategic agenda with four key pillars: prosperity and sustainability, technology and innovation, security and defense, and connectivity and global issues. A partnership for security and defense is also expected to be signed, strengthening cooperation in areas such as maritime security and space. International issues such as the war in Ukraine and the situation in the Middle East will also be discussed. Von der Leyen described the agreement as a "historic trade agreement", referring to it as the "mother of all deals".