India, EU reach landmark trade deal to slash tariffs on most goods

NEW DELHI (Reuters) – India and the European Union struck a long‑delayed deal on Tuesday that will slash tariffs on most goods, aiming to boost two‑way trade and reduce reliance on the United States amid growing global trade tensions.The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs in 96.6% of traded goods by value, and will lead to savings of 4 billion euros ($4.75 billion) in duties for European companies, the EU said.The EU will cut tariffs on 99.5% of goods imported from India over seven years, with tariffs to be cut to zero on Indian marine goods, leather and textile products, chemicals, rubber, base metals, gems and jewelry, India’s trade ministry said in a statement.India and the EU said agriculture-related items like soya, beef, sugar, rice and dairy have been kept out of the purview of the trade deal.“Yesterday, a big agreement was signed between the European Union and India,” Indian Prime Minister Narendra Modi said earlier.“People around the world are calling this the mother of all deals.This agreement will bring major opportunities for the 1.4 billion people of India and the millions of people in Europe,” he said.The two-decade-long EU–India trade talks gained momentum after Washington imposed a 50% tariff on some Indian goods, and as U.S.

allies pushed back against President Donald Trump’s tariff threats and his bid to take over Greenland.Canada’s Prime Minister Mark Carney, in a speech that got a standing ovation in Davos last week, urged middle powers to come together to avoid becoming victimized.He is planning to visit India to sign deals on uranium, energy, and minerals, after striking a deal recently with China.Before signing the deal with New Delhi, the EU agreed a pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico, and Switzerland.

During the same period, New Delhi ...