{"id":443728,"date":"2026-01-26T13:17:22","date_gmt":"2026-01-26T12:17:22","guid":{"rendered":"https:\/\/www.eunews.it\/2026\/01\/26\/ue-e-india-un-accordo-di-libero-scambio-per-sfidare-un-mondo-frammentato\/"},"modified":"2026-01-26T16:15:26","modified_gmt":"2026-01-26T15:15:26","slug":"eu-india-set-to-sign-free%e2%80%91trade-pact-to-challenge-a-fractured-world","status":"publish","type":"post","link":"https:\/\/www.eunews.it\/en\/2026\/01\/26\/eu-india-set-to-sign-free%e2%80%91trade-pact-to-challenge-a-fractured-world\/","title":{"rendered":"EU, India set to sign free\u2011trade pact to challenge “a fractured world”"},"content":{"rendered":"

Brussels \u2013 “We are showing a fractured world that another way is possible.<\/strong>” This is the path taken by European Commission President Ursula von der Leyen<\/strong>, who has travelled to India to sign another important free trade agreement tomorrow, following the controversial EU-Mercosur deal. In an international context of protectionism and tariffs, the European Union is seeking to diversify its allies in response to the United States’ aggressive protectionist policies<\/strong>. <\/p>\n

With the lengthy negotiations with the four Mercosur<\/a> countries (almost) concluded, the Commission President is now looking to India. The economic pact would open up a market of 1.5 billion inhabitants<\/strong> to European producers, lowering trade tariffs on 90 per cent of traded goods.<\/strong> Strategic sectors such as automotive, chemicals, and plastics<\/strong> will be involved. According to reports from The Times of India<\/a>, in addition to the likely signing of the trade deal, EU representatives will also sign documents for a stronger partnership on security issues<\/strong>, mobility, and a global strategic agenda<\/strong> for the period 2026-2030.\n<\/p>\n

\n

Today we join India in celebrating Republic Day.<\/p>\n

Our partnership is built on a shared goal to tackle the world\u2019s greatest challenges. <\/p>\n

As we look forward to tomorrow\u2019s EU-India Summit, we are ready to take our next step together. pic.twitter.com\/7Ud8Qsnvto<\/a> <\/p>\n

\u2014 European Commission (@EU_Commission) January 26, 2026<\/a><\/p><\/blockquote>\n

What is in the pact?<\/h3>\n

\nToday, 26 January, the President of the Commission (wearing a golden Indian dress) and the President of the European Council, Antonio Costa<\/strong>, are attending the Republic Day parade in New Delhi with full honours. After the celebrations, however, tomorrow will be handshake time. On the table, the agreement is expected to include a reduction in tariffs from 110 per cent to 40 per cent on 12-star cars, as well as reductions in tariffs in sectors such as car components, plastics production, and wine trade. <\/p>\n

Left out of the deal, however, is the agri\u2011food sector, <\/strong>a key sticking point in the agreement with Mercosur. <\/strong> New Delhi has instead requested exemptions from European climate rules, such as the Carbon Border Adjustment Mechanism (CBAM)<\/a>, and does not intend to recognise agri-food certifications on European food products. <\/p>\n

\"Farmers<\/a>
Farmers protesting in Brussels against the free trade agreement with MERCOSUR (credits: Sameer Al-Doumy \/ Afp)<\/figcaption><\/figure>\n

Low tariffs on automotive products and wines<\/h3>\n

\nTo date, the state governed by Narendra Modi is already the EU’s main trading partner<\/strong><\/a> in goods: bilateral trade in 2024-25 amounted to 136 billion euros<\/strong> (exports to the EU worth 76 billion euros, imports from the EU worth 60 billion). <\/p>\n

Trade between the two economic powers, although already significant, could increase<\/strong> by 30-40 per cent,<\/strong> at least according to studies carried out by the EU. <\/p>\n

The benefits for EU producers could be more significant in sectors such as the automotive industry: EU cars have a market share of only 5 per cent,<\/strong> while in the wine sector<\/strong> (which is growing strongly in India), European producers export<\/a> less than they do to Iceland due to very high tariffs. Yesterday, President von der Leyen described the agreement as “the highest level of access ever granted to a trading partner in the traditionally protected Indian market.”<\/p>\n

<\/p>\n

Geopolitics and contradictions<\/h3>\n

\nToday’s visit has both geopolitical and economic significance. With the agreement’s ratification, the EU could outstrip China and the US in trade relations with India<\/strong>, while also strengthening defence ties with a key ally in the Pacific Ocean. There are contradictions in this regard. In fact, Modi remains one of Russian President Vladimir Putin<\/strong>‘s best friends, thanks to a supply of low-cost hydrocarbons from Siberia. It is safe to say that Modi himself is one of the main financiers of Russia’s war against Ukraine<\/strong>.\n<\/p>\n

\n

Picture released from the Modi-Putin meeting in India pic.twitter.com\/AIlqsYxTTW<\/a><\/p>\n

\u2014 Visegr\u00e1d 24 (@visegrad24) December 4, 2025<\/a><\/p><\/blockquote>\n

\n

In any case, after Trump’s harsh measures and his arrogant remarks against long-standing partners and friends, the EU is attempting to diversify its partners. To use the words of Canadian Prime Minister Mark Carney<\/a> in Davos: this trade agreement represents a first victory for the “middle powers.”<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The agreement to be signed tomorrow provides for a tariff reduction on 90 per cent of goods traded with India. However, agri-food products will be left out. Von der Leyen: “The EU will obtain the highest level of access to the traditionally protected Indian market.”<\/p>\n","protected":false},"author":7891,"featured_media":443713,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","show_comment_section":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","subtitle":""},"jnews_primary_category":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[25705],"tags":[25815,32122,26598,25929,30231,32910],"class_list":["post-443728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-accordo-commerciale-en","tag-dazi-en","tag-free-exchange-en","tag-india-en-2","tag-tariffe"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/443728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/users\/7891"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/comments?post=443728"}],"version-history":[{"count":1,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/443728\/revisions"}],"predecessor-version":[{"id":443729,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/443728\/revisions\/443729"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media\/443713"}],"wp:attachment":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media?parent=443728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/categories?post=443728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/tags?post=443728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}