“India-EU Trade Deal Signals Push Against Tariffs and Protectionism: EU Council Chief”

India-EU Partnership Seen as Key to Global Stability, Trade: European Council President

India and the European Union (EU) can act as “strong providers of stability, protectability and reliability” on the global stage, safeguarding the rules-based international order amid rising geo-economic turbulence, 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 to HT ahead of the India-EU Summit on Tuesday. He highlighted growing security and defence cooperation as critical for preserving stability in the Indo-Pacific and ensuring free and open trade between the Indo-Pacific and the Atlantic.

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

“In our multipolar world, it’s essential that the EU and India strengthen their partnership. Together, we can provide stability and protect our international rules-based order. Our trade agreement is not just economic — it’s a geopolitical stabilizer and a showcase of how rules-based trade can succeed,” Costa said, noting the backdrop of unpredictable global trade policies.

The EU is India’s largest trading partner, with €120 billion in goods traded in 2024, accounting for 11.5% of India’s total trade. Trade in services reached €59.7 billion in 2023, while EU foreign direct investment in India rose to €140.1 billion in 2023 from €82.3 billion in 2019.

Once ratified by the European Parliament, the FTA could significantly expand bilateral trade and boost Indian exports, including textiles and jewellery, which have faced punitive US tariffs since August. Costa emphasized that the agreement will send “an important political message that India and the EU favor trade agreements over tariffs” amid rising protectionism globally.

The Security and Defence Partnership will deepen collaboration in cybersecurity, counter-terrorism, and maritime security. “We are working with India in Operation Aspides, which has been crucial for security in the Indo-Pacific and maintaining free trade routes from the Indo-Pacific to the Atlantic via the Mediterranean and Red Sea,” Costa said.