Summary
The European Union and India have agreed to a significant trade deal that will allow free trade between the two partners. This agreement arrives during global trade tensions involving President Trump. The pact aims to boost economic ties by removing many tariffs and increasing market access between them.
Key Facts
- The European Union and India have agreed on a trade deal that enables free trade between them.
- The agreement allows for reduced tariffs on most exports, including chemicals, machinery, and vehicles.
- Talks for this deal started in 2007, stalled in 2013, and restarted in 2022.
- President Trump has engaged in global trade disputes, influencing the timing of the EU-India deal.
- President Trump announced increased tariffs on South Korean imports to 25 percent.
- The European Union and India combined represent 25 percent of the global GDP and a market of 2 billion people.
- The agreement still needs formal approval by the European Parliament and European Council.
- Indian duties on motor vehicles will drop significantly, aiming to improve trade flow.
