European Council President António Costa has hailed the EU-India free trade agreement as a decisive step for Europe in a multipolar world, telling Euronews the deal provides predictability for businesses and investors in an era of global uncertainty.
Speaking in New Delhi after the conclusion of the agreement on Tuesday, Costa described the pact as economically significant but stressed its broader geopolitical message: the world's two largest democracies are choosing cooperation over confrontation.
“The deal has great value from an economic view, but perhaps more important is the message that the two largest democracies in the world are sending to the international community,” Costa said. “It's important, it's essential to provide predictability to engage in cooperation instead of confrontation.”
Tariff reductions and economic impact
The agreement will eliminate duties on more than 90% of European exports to India, saving European exporters approximately €4 billion annually. For European industries ranging from German automotive components to French aerospace parts and Italian machinery, the deal opens a market of 1.4 billion consumers.
Costa rejected suggestions that the multilateral trading system is in decline, arguing instead that the EU-India pact strengthens it. “We are living in a multipolar world. And in this world, we need to underpin the multilateral system, uphold international law, and engage bilaterally with the different parts of the world,” he said, noting a string of recent EU trade deals including the one with Mercosur.
The agreement comes as countries worldwide seek alternatives to the US market following President Donald Trump's aggressive tariff policy. Since the so-called “Liberation Day” in April 2025, Washington has imposed tariffs on both allies and adversaries. Last summer, a contentious trade deal brokered at Trump's Turnberry golf course in Scotland effectively tripled pre-“Liberation Day” tariffs on EU exports, drawing criticism from members of the European Parliament who argued the EU had capitulated.
In response, the European Commission has reinvigorated its trade agenda, looking to new markets from Latin America to Asia. The EU-India deal is part of this broader diversification strategy, which also includes recent agreements with Mercosur and ongoing negotiations with other partners.
India itself faces a 50% tariff regime imposed by Washington in retaliation for New Delhi's continued purchases of Russian oil. The Trump administration has indicated it could lower those tariffs—which effectively shut down Indian exports to the US—only if Prime Minister Narendra Modi halts imports of Russian crude.
When asked whether he feared US retaliation over the EU-India deal, Costa responded firmly: “Why (should we)? We fixed the trade agreement with the United States. It's now in the European Parliament to be approved. And we are diversifying our trade relationships.”
A European official told Euronews that the complex geopolitical scenario, coupled with the introduction of tariffs, gave new momentum to negotiations to seal the deal with India. Costa added that when “several economic global agents are disturbing the global trade,” trade agreements are needed to “stabilise the trade relationship.”
India's trade minister, Piyush Goyal, told Euronews at a press conference that Trump's policies had not featured in bilateral discussions during the three-day visit, which saw a large European delegation led by Costa and EU Commission President Ursula von der Leyen treated with state honours.
The agreement also has implications for European security and supply chain resilience. By deepening economic ties with India, the EU reduces its dependence on any single market, a strategy that aligns with broader efforts to shield European industries from subsidised imports and ensure fair competition.
For Central European economies, the deal offers new export opportunities. Poland, leveraging its G20 seat, has been amplifying Central European economic voices in global trade discussions, and the EU-India agreement provides a concrete platform for that ambition.
As the global trade landscape shifts—with tensions in the Strait of Hormuz driving Turkey to host middle powers in Antalya in search of new trade routes—the EU-India deal stands as a signal that Europe intends to remain a central player in shaping the rules of international commerce.
