India–EU Free Trade Agreement Concluded: A Strategic Breakthrough in Global Trade Engagement
27th January 2026, India and the European Union have concluded the negotiation on a free trade agreement, “Mother of all Deals. Historic Milestone Announced at the 16th India–EU Summit by Hon’ble Prime Minister Shri Narendra Modi and European Commission President H.E. Ms. Ursula von der Leyen. India, 4th largest economy, and the European Union, 2nd largest economy, comprising 25% of Global GDP, Forge a Trusted Partnership. The European Union (EU)–India Free Trade Agreement (FTA) represents a landmark step toward deeper economic integration between two major global markets. The agreement delivers extensive tariff liberalisation, improved market access across key sectors, robust rules of origin, and enhanced customs cooperation, while carefully balancing sensitivities on both sides.
Key features of trade agreement:-
- Tariff Liberalisation:
The FTA achieves an exceptionally high level of tariff liberalisation:
- The EU will eliminate tariffs on over 90% of tariff lines, representing 91% of trade value.
- India will eliminate tariffs on 86% of tariff lines, accounting for 93% of trade value.
- Both sides will partially liberalise additional tariff lines, increasing total trade liberalisation coverage to:
- 96.6% for India
- 99.3% for the EU
This ambitious coverage reflects the depth of the agreement and its strong potential to expand bilateral trade flows.
- Sectoral Benefits for Both Economies
The agreement delivers significant benefits to priority economic sectors on both sides.
India has committed to removing high industrial tariffs, which currently average above 16%, across a wide range of EU export interests:
- Chemicals: Tariffs up to 22%, mostly removed at entry into force
- Cosmetics: Tariffs up to 22%, removed after 5–7 years
- Plastics: Some liberalised at entry into force, many after 7 years
- Car parts: Most tariffs removed over 5–10 years
- Textiles and apparel: Most tariffs removed at entry into force
- Ceramics: Most tariffs removed at entry into force
- Machinery: Around half liberalised at entry into force, remainder phased out over up to 10 years
- Boats: Liberalised mainly at entry into force
These reductions will significantly improve EU exporters’ access to the Indian market, which has historically been constrained by high tariff barriers.
- Tariff Elimination for Key EU Agri-Food Exports
- Olive oil: Tariffs up to 45%, eliminated at entry into force or after 5 years
- Non-alcoholic beer and fruit juices: Tariffs up to 55%, eliminated within 5 years
- Processed foods (confectionery, bread, pastry, pasta, chocolate, pet food): 33% tariffs eliminated at entry into force or after staging
- Sheep meat: 33% tariff eliminated over staging periods
- Alcoholic Beverages and Fruits
The agreement delivers major market access improvements for EU exports of wines, spirits, beer, and fruits:
- Alcoholic beverage tariffs (currently up to 150%) will be reduced to:
- 30% for most wines
- 40% for spirits
- 50% for beer
- Tariff Rate Quotas (TRQs) will expand EU access for fruits such as kiwis and pears
- A dedicated EU–India Working Group on Wines and Spirits will facilitate cooperation, information exchange, and dialogue on oenological practices
- Protection of EU Agricultural Sensitivities
The EU has ensured the protection of its most sensitive agricultural sectors. No concessions are granted for:
- Sugar and ethanol
- Rice and soft wheat
- Beef and poultry
- Milk powders
- Bananas and honey
Additionally, well-calibrated quotas will limit imports of table grapes and cucumbers.
Under the Sanitary and Phytosanitary (SPS) chapter, the EU will fully maintain its stringent standards on:
- Animal and plant health
- Food safety
- Sanitary and phytosanitary controls
- Rules of Origin
The agreement establishes modern and robust rules of origin, aligned with recent EU FTAs. These rules ensure that only goods substantially produced or sufficiently processed in the EU or India can benefit from preferential tariffs.
Key features include:
- Self-certification of origin by exporters
- Use of a statement on origin uploaded to a dedicated portal
- Customs verification through cooperation between EU and Indian authorities
- Administrative cooperation before any denial of preference
This approach simplifies compliance, particularly for small and medium-sized enterprises (SMEs). For more details, please refer European Commission
EU and Mercosur seal historic trade deal
The European Union and the Mercosur bloc signed their long-awaited trade agreement, sealing one of the world’s biggest free-trade deals after more than 25 years of negotiations and repeated political standoffs. European Commission President Ursula von der Leyen and European Council President António Costa attended the ceremony in Asunción, Paraguay, alongside Mercosur leaders from Argentina, Uruguay and host country Paraguay. Brazilian President Luiz Inácio Lula da Silva, a key proponent of the pact, did not attend, delegating representation to his foreign minister.
The signing marks the culmination of a bruising political battle inside the EU that only cleared its final hurdle last week, when member states backed the agreement by a qualified majority following a flurry of last-minute concessions. France, Poland, Austria, Ireland and Hungary opposed the agreement, while Belgium abstained.
The deal must still be approved by the European Parliament and national legislatures on both sides of the Atlantic, where opposition particularly from farming groups is expected to remain fierce. If fully ratified, the agreement would create a free-trade area covering more than 700 million people across Europe and Latin America. More than 90 percent of tariffs on EU exports would be phased out over time, opening new markets for European manufacturers, especially in industrial sectors. Mercosur countries, meanwhile, would gain greater access to the EU market for agricultural products under strict quota systems designed to protect sensitive European sectors such as beef and poultry.
EU Parliament delays decision to unfreeze US trade deal
The European Parliament has postponed its decision to unfreeze the EU-U.S. trade deal but signalled it would do so at a later date. After two and a half hours of closed-door talks on Monday, the Parliament’s top trade lawmakers failed to agree whether to put the transatlantic deal to a vote. This despite calls from EU countries last week to unblock the implementation because U.S. President Donald Trump had walked back his threats to seize Greenland.
EU and Ecuador conclude negotiations for Sustainable Investment Agreement
The European Commission has concluded negotiations with Ecuador on a Sustainable Investment Facilitation Agreement (SIFA). This SIFA, the first negotiated with a Latin American country, will be instrumental in promoting EU investments in Ecuador. The deal will support the creation of a more transparent and efficient business environment in Ecuador by addressing challenges such as regulatory uncertainty and bureaucratic hurdles. Improvements in the investment climate will benefit both EU and local investors, and promote additional sustainable investment. At a time of increasing uncertainties and geopolitical shifts, this Agreement shows that predictability and stability can be achieved through a shared commitment to international cooperation and the rules-based order. Ecuador business climate is improving as shown, for example, by faster procedures to proceed pending payments by public authorities. The agreement also upholds environment and climate commitments, as well as respect for labour rights, making sure the facilitation of investments contributes to sustainability objectives and the achievement of the Sustainable Development Goals.
EU-Moldova - EU position on the continuation of the transport agreement
The published Council Decision (EU) 2026/106 confirms the position to be taken by the European Union in the EU-Moldova Joint Committee with a view to extending the Agreement on the Carriage of Goods by Road. The act allows the liberal rules for transport between the EU and Moldova, introduced in connection with Russia's aggression against Ukraine, to continue to function. The agreement is to be extended until March 31, 2027.
GCC, Indonesia seek to finalize trade talks this year
The Gulf Cooperation Council and Indonesia are aiming to finalize their free trade agreement in 2026. Indonesia has been working to enhance trade ties with GCC members, and already has a Comprehensive Economic Partnership Agreement with the UAE, its first with a Gulf nation. Jakarta and the GCC formally launched negotiations for a free trade agreement in July 2024, and have so far held four rounds of negotiations. Indonesia’s trade with GCC countries was valued at around $15.4 billion between January and November 2025, with its main export commodities including palm oil, coffee, jewelry and motor vehicles. The FTA is projected to increase Indonesian exports by 17.4 percent, and provides a boost to electronics, leather goods, metal products, textile and the manufacturing sectors, while also expanding exports to the Middle East, Africa and Europe.
India – Russia next round of trade talks by Feb-end
India’s negotiating team is expected to travel to Russia at the end of February after the Union Budget 2026 for the next round of negotiations for a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU). The focus of the talks would be to reduce the current non-tariff measures imposed by Russia on Indian imports, as well as looking into simplifying the current overlap of standards for export of goods. Currently goods exported from India face a number of regulatory overlaps including EAEU requirements as well as Russian ones.
Kenya, UAE seal landmark trade deal to boost agriculture
Kenya and the United Arab Emirates (UAE) have signed a landmark Comprehensive Economic Partnership Agreement (CEPA), the first such trade deal between the UAE and a mainland African country, positioning Kenya as a strategic gateway for trade, investment and technology cooperation with the Gulf region. The agreement is expected to deepen bilateral trade ties, remove tariff and non-tariff barriers, ease customs procedures and promote industrialisation, digital trade and services. It is currently before Parliament for ratification. To fast-track implementation of the CEPA, Cabinet Secretary for Agriculture Mutahi Kagwe has held high-level talks with the UAE Ambassador to Kenya and representatives of the Al Zayed Charitable and Humanitarian Foundation, with a focus on scaling up cooperation in agriculture and livestock development.
Kenya strikes preliminary duty-free trade deal with China
Kenya has struck a preliminary trade deal with China that would give 98% of its exports duty-free access to the large Chinese market. The East African nation has been forging closer ties with China, with President William Ruto making a state visit to Beijing last year during which a number of financing and cooperation agreements were signed.
Mexico, South Korea move closer to bilateral free trade agreement
Mexico and South Korea are moving forward to conclude a bilateral free trade agreement, a deal both governments view as key to deepening economic cooperation, reducing tariff barriers and providing greater certainty for Korean and Mexican companies operating in both markets. The push gained momentum during a visit by a delegation from South Korea’s National Assembly to Mexico’s Senate, where Mexican lawmakers highlighted the role of parliamentary diplomacy in accelerating dialogue and unlocking long-stalled trade negotiations. Legislators said the Mexican Congress will closely follow the process to help bring the agreement to fruition in the near term. Diplomatic relations between Mexico and South Korea were formally established in 1962, though ties between the two nations date back more than a century. In 1905, nearly 1,000 Korean citizens settled in southeastern Mexico, laying the foundation for a historical relationship that has steadily deepened over time. Since 2005, the two countries have maintained a strategic partnership focused on prosperity, expanding cooperation in areas including education, science and technology. Economically, bilateral trade currently totals about US$24.5 billion annually, positioning South Korea as one of Mexico’s most important Asian trading partners.
Mexico Approves the Accession of the UK to CPATPP
On January 20, 2026, the President of Mexico published in the Diario Oficial aDecree in which based on Article 30.4 of Chapter 30 of the CPATPP approves the Protocol of Accession of the United Kingdom of Great Britain and Northern Ireland (UK) to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPATPP.
Official date of accession is still pending until all protocols of the agreement are met. When the accession is formalized, goods from the UK will be able to take advantage of tariff preferences. Source
Nigeria, UAE strike trade pact to scrap tariffs on over 7,000 products
Nigeria has signed a far-reaching trade agreement with the United Arab Emirates that will eliminate tariffs on thousands of products and deepen economic ties between Africa’s largest economy and one of the world’s most dynamic trading hubs. The Nigeria–UAE Comprehensive Economic Partnership Agreement was signed on the sidelines of Abu Dhabi Sustainability Week, with President Bola Tinubu and UAE President Mohamed bin Zayed Al Nahyan in attendance. The deal is designed to expand market access for Nigerian exporters, encourage new investment flows, and strengthen Nigeria’s role as a gateway for trade into Africa. For Nigerian exporters, the deal represents a significant opening. Oduwole said the UAE will eliminate tariffs on more than 7,000 Nigerian products, including agricultural and industrial goods such as fish and seafood, oil seeds, cereals, cotton, pharmaceuticals, and chemicals. Over the next three to five years, tariffs will also be removed on machinery, vehicles, electrical equipment, apparel, and furniture. Nigeria has also made commitments under the deal. Oduwole said the country will eliminate tariffs on around 6,000 products, with about 60 percent removed immediately and the remainder phased out over five years. These imports are largely industrial inputs, capital goods, and machinery intended to boost domestic productive capacity, while Nigeria’s import prohibition list will remain in force.
In services, Nigeria’s commitments cover 99 specific services across 10 sectors, including business, communications, transportation, financial services, construction, health, and tourism.
Philippines and EU trade talks to resume early March
The fifth round of negotiations for the country’s free trade agreement (FTA) with the European Union will resume in early March 2026 in Belgium. GSP+ gives developing countries zero-tariff access for over 6,000 products to the EU market, provided they follow 27 international conventions on human rights, labor, environmental protection, and good governance. Last year, the country’s EU GSP+ utilization exceeded 80 percent. Currently, it is allowed to export 6,274 products at zero duties. The arrangement will expire in 2027.
South Korea’s delay in trade agreement ratification prompts Trump to increase tariffs
U.S. President Donald Trump has declared a surprise increase in tariffs on major items including Korean automobiles from the existing 15% to 25%. Trump wrote on his social media Truth Social on January 26 (local time), “Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS from 15% to 25%.” The cause of this situation lies in Korea’s failure to enact legislation to implement the tariff agreement concluded between the two countries last year. At that time, Korea promised $350 billion in investment to the U.S. and $100 billion in purchases of U.S. energy (LNG, etc.) in exchange for lowering U.S. tariffs from 25% to 15%. According to the National Assembly Bill Information System, five special bills related to Korea’s strategic investment in the United States have been proposed but are stuck in the National Assembly’s Finance and Economy Committee. Trump’s surprise move has thus exploited the difference in the trade legal systems of Korea and the U.S. The United States can immediately impose tariffs, citing national security reasons, through Trade Expansion Act Section 232 with only a presidential executive order without congressional approval. In contrast, Korea must obtain ratification from the National Assembly for treaties concerning legislative matters or trade agreements that impose significant burdens on national finances, according to Article 6 of the Trade Procedure Act and the Constitution.
Switzerland and Singapore sign mutual legal assistance treaty
Switzerland and Singapore intend to strengthen their cooperation in the fight against international crime. Federal Councillor Beat Jans and Singapore's Minister of Justice Edwin Tong signed a bilateral mutual legal assistance treaty in criminal matters in Bern on 21 January 2026, after the Singaporean government approved the treaty at the end of 2025. The Federal Council had already approved the contract on 13 December 2024 and granted the authorisation to sign.
US and Taiwan reach trade deal, with focus on semiconductor chips
The U.S. and Taiwan clinched a trade deal that cuts tariffs on many of the semiconductor powerhouse’s exports, directs new investments in the U.S. technology industry and risks infuriating China. The deal deepens the Trump administration’s ties with Taipei at a critical time as China ratchets up pressure on the island, which it views as its own, and Washington has worked to avoid an all-out trade war with Beijing. Under the long-negotiated deal, Taiwanese chipmakers like TSMC (2330.TW) that expand U.S. production will be charged a lower tariff on semiconductors or related manufacturing equipment and products they import into the U.S. and can import some duty-free. Broad tariffs that apply to most other Taiwanese exports to the U.S. will fall from 20% to 15%. Generic pharmaceuticals, aircraft components and "unavailable natural resources" will face a 0% tariff, the Commerce Department said. The U.S. also committed that Taiwan will be treated no worse than anyone else should chips tariffs be increased later, according to Taiwan. In exchange, Taiwanese companies will invest $250 billion to increase production of semiconductors, energy and artificial intelligence in the U.S. That includes $100 billion already committed by TSMC in 2025. Taiwan will also guarantee an additional $250 billion in credit to facilitate further investment.