“India-EU Trade Pact Sends Strong Message Against Tariffs and Protectionism: EU Council President”

India-EU Partnership Seen as Global Stabilizer, FTA to Send Message Against Protectionism: EU Council President

India and the European Union (EU) can together be “strong providers of stability, protectability and reliability” on the global stage, safeguarding the rules-based order amid rising geopolitical and trade uncertainties, European Council President Antonio Costa said on Monday.

Costa, the chief guest at India’s Republic Day celebrations alongside European Commission President Ursula von der Leyen, spoke ahead of the India-EU Summit on Tuesday. He emphasized that growing security and defence cooperation is vital for maintaining stability in the Indo-Pacific and ensuring free and open trade between the Indo-Pacific and the Atlantic.

The summit is expected to conclude negotiations on a free trade agreement (FTA), a Security and Defence Partnership, and a framework to facilitate mobility for Indian students and professionals.

“In today’s multipolar world, the EU and India must become closer partners. Our trade agreement is more than economics — it’s a geopolitical stabilizer and a showcase of rules-based trade,” Costa said, highlighting the challenges posed by unpredictable global trade policies.

Trade and Investment Ties

The EU is India’s largest trading partner, with €120 billion in goods exchanged in 2024 (11.5% of India’s total trade) and €59.7 billion in services trade in 2023. EU investment in India reached €140.1 billion in 2023, up from €82.3 billion in 2019.

Once ratified by the European Parliament, the FTA could boost Indian exports like textiles and jewellery, which have been affected by US tariffs since August. Costa said the agreement will send a strong political message: India and the EU favor trade deals over tariffs, at a time when protectionism is rising globally.

Security and Defence Cooperation

The Security and Defence Partnership will strengthen collaboration in cybersecurity, counter-terrorism, and maritime security. Costa highlighted joint efforts such as Operation Aspides, which supports security in the Indo-Pacific and protects trade routes between the Indo-Pacific and the Atlantic via the Mediterranean and Red Sea.