EU, India set for historic trade deal amid US tariffs - DW.com

India and the European Union (EU) have finalized a landmark free trade agreement, referred to by EU Commission President Ursula von der Leyen as the “mother of all deals.” This agreement concludes nearly two decades of negotiations that have seen significant acceleration over the past six months. The deal was finalized late on a Monday night, marking a significant step in enhancing trade relations between India and the EU amid rising tensions with the United States, which has imposed steep tariffs affecting both economies. As part of the agreement, India is expected to reduce tariffs on cars to 40%. In return, the EU will ease access for Indian exports, including textiles, gems, and pharmaceuticals. This trade deal aims to strengthen economic ties and create a more balanced trading environment between the two regions, which have been seeking closer cooperation in light of the changing global trade landscape. The deal is seen as a strategic response to the uncertainty created by U.S. tariffs, prompting both India and the EU to explore alternative partnerships. The agreement is anticipated to open up the Indian market further to European goods, enhancing trade flows and economic collaboration. The finalization of this trade deal is a significant milestone for both parties, reflecting their commitment to fostering stronger economic ties.