Von der Leyen signs ‘tale of two giants’ EU-India trade deal

EU and Indian leaders signed a landmark trade pact on Tuesday (27 January), with EU Commission president Ursula von der Leyen describing it as “a tale of two giants”, at a signing ceremony in New Delhi. 

The agreement with India follows almost two decades of stop-start talks, which started back in 2007. It links up the world’s second and fifth-largest economies. 

The commission says that the pact will save EU exporters around €4bn in tariffs each year and slash duties on a raft of products, including cars. They have targeted ratification of the agreement, which will now be analysed by lawyers as part of a ‘legal scrubbing’ process, before the end of this year.

“We have sent a signal to the world that rules-based cooperation still delivers great outcomes,” said von der Leyen in a statement on Tuesday. 

This deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs in value of 96.6 percent of EU goods exports to India. 

The commission chief added that India is likely to become the next country to join the EU’s €100bn research and development programme, Horizon Europe, with the creation of so-called EU-India Innovation Hubs and an EU-India Startup Partnership to boost co-creation, and high-potential ventures. 

Tariffs on over 90 percent of EU goods exports will be eliminated or reduced. The main beneficiaries are likely to be the chemicals, pharmaceuticals, machinery and electric industry sectors, all of which will see tariffs abolished.