søndag 25. januar 2026

EU, India set for historic trade deal amid US tariffs

At a high stakes summit in New Delhi this week, the EU and India are expected to finalize a free trade agreement and sign a new security and defense partnership, the third such agreement between the EU and an Asian country after Japan and South Korea.

"Despite longstanding arguments in favor of a closer partnership, including shared competition with China and trade incentives for both parties, it was Russia's invasion of Ukraine and Trump's punitive tariffs that have brought momentum to the relationship," said Praveen Donthi, a senior analyst at the International Crisis Group based in Delhi.

Before the summit, European Commission President Ursula von der Leyen and European Council President Antonio Costa will be the chief guests at India's Republic Day celebrations on Monday, when diverse floats from all over country will be on display alongside parading tanks and soldiers. They are the first top EU officials to be invited to take part in the event.