India-EU Free Trade Pact Signals Stand Against Rising Protectionism, Says European Council President
European Council President Antonio Costa has described the impending free trade agreement (FTA) between India and the European Union as a powerful counter to growing protectionism and tariff barriers worldwide. In an exclusive interview , Costa emphasized that the deal would serve as a geopolitical stabilizer, demonstrating a commitment to rules-based international trade amid increasing economic unpredictability.
Speaking ahead of the India-EU Summit in New Delhi, Costa highlighted the potential for India and the EU to jointly promote global stability, predictability, and reliability. He noted that in today’s multipolar world, closer partnership between the two is vital to safeguarding the rules-based international order. The FTA, he said, goes beyond economics—it sends a clear political message that India and the EU prioritize open trade agreements over tariffs and protectionist measures.
Costa’s comments come as the summit is set to finalize the long-pending FTA, alongside a Security and Defence Partnership and arrangements to ease mobility for Indian students and professionals. The EU stands as India’s largest trading partner, with goods trade reaching €120 billion in 2024—representing 11.5% of India’s total trade—and services trade at €59.7 billion in 2023. EU foreign direct investment stock in India rose to €140.1 billion in 2023 from €82.3 billion in 2019.
Once ratified by the European Parliament—a process likely to take at least a year—the agreement is expected to boost bilateral trade significantly. It could provide relief for Indian exports such as textiles and jewellery, which have faced steep 50% tariffs from the United States since late August. Costa pointed out that the pact would create a market of nearly two billion people by reducing reciprocal tariffs, fostering job creation, economic growth, and prosperity.
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The European leader also underscored deepening security and defence ties, including joint efforts in Operation Aspides, which have helped secure free and open trade routes linking the Indo-Pacific to the Atlantic via the Mediterranean and Red Sea. This cooperation, he added, is essential for maintaining stability in the Indo-Pacific and ensuring secure commerce.
Costa, who has ancestral roots in Goa, delivered his remarks during a visit to India where he served as chief guest at the Republic Day celebrations alongside European Commission President Ursula von der Leyen. The statements reflect a strategic response to recent US trade policies under President Donald Trump, including tariffs on India and other partners, even as India and the US continue bilateral trade discussions.