Reporting and opinion by Mathew Carr
EU and India to collaborate on curbing GHG emissions.
US selfishness is pushing the rest of the world together.
Manon Dufour, Executive Director of environmental lobby group E3G’s Brussels office, said by email:
“Securing a comprehensive trade deal would reaffirm the EU as a reliable and collaborative partner, and mark a major achievement for von der Leyen’s Commission after nearly two decades of negotiations. More broadly, Europe is beginning to move beyond a year of reactiveness — accelerating partnerships from Mercosur to India and recognising that, in a world shaped by the US and China, major powers below that scale must cooperate to retain agency. Deepening ties with India is not just about trade, but about shaping a more resilient, competitive clean economy and a stable geopolitical order.”
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The context
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Here’s the latest on the EU–India trade deal this week (January 26–27, 2026):
🔥 Near-final Free Trade Agreement (FTA)
India and the European Union are on the brink of concluding a long-awaited free trade deal, expected to be announced at the EU-India Summit in New Delhi on Tuesday, January 27, 2026. EU and Indian leaders — including Ursula von der Leyen (President of the European Commission) and António Costa (European Council President) — are in India this week ahead of that summit.
🚗 Major Market Access Concessions
One of the big breakthroughs reportedly is India agreeing to cut tariffs on imported EU cars from up to 110 % down to 40 %, with a phased reduction to around 10 % over time. This is one of the most significant openings of India’s protected auto market and is seen as a key EU priority.
📈 Strategic & Political Context
The deal is being framed by European leaders as a “historic” and strategically important pact — both economically and geopolitically — especially amid broader global trade tensions (e.g., US tariffs on India). Discussions are also highlighting broader cooperation beyond trade, including stronger diplomatic ties and potentially defense/security partnerships.
🇪🇺🇮🇳 What’s at stake
This agreement — if sealed — would be one of the largest trade deals the EU has ever negotiated with a major economy, covering goods, services, investment, and regulatory cooperation. It comes after years of stops and starts in negotiations, and both sides seem to be pushing to finalise the deal at the 16th EU-India Summit on Jan 27.
🔄 Temporary Trade Issues
Separately, the EU’s Generalised System of Preferences (GSP) tariff preferences for India were scaled back from Jan 1, 2026 — an interim headache for exporters — though the Indian government downplays the impact as limited.
What’s next: Expect official announcements and possibly a formal signing statement on January 27, along with details on tariff schedules and sector-specific commitments once the summit wraps up.