India-EU Free Trade Agreement (FTA)
The Free Trade Agreement (FTA) between India and the European Union (EU) is set to be signed on December 16, 2026. This signing will occur during Prime Minister Narendra Modi’s planned visits to Canada, the U.S., and Belgium.
Approval and Ratification
- The EU FTA has received "majority approval" in Europe.
- It will not require separate ratification by each EU country after approval from the European Council.
- The European Parliament is expected to pass it within one to two months, enabling implementation in early 2027.
Negotiation and Support
- Negotiations resumed in June 2022 and concluded in January 2026.
- The deal has substantial support as contentious issues were excluded to facilitate agreement.
India-Canada FTA
Prime Minister Modi is also expected to visit Canada in December to sign the India-Canada FTA, anticipated to be completed by November 2026.
Trade Relations
- Canadian Prime Minister Mark Carney highlighted the progress and importance of the trade relationship with India.
- The aim is to conclude negotiations by the December G20 Summit in the U.S.
India-U.S. Trade Agreements
During the G20 meeting in Miami, the agenda will include the India-U.S. Interim Agreement on trade and a larger Bilateral Trade Agreement (BTA), both facing delays.
Challenges
- Originally announced in February 2025, the BTA was delayed due to reciprocal U.S. tariffs on Indian imports.
- An Interim Agreement was planned for completion by March-April 2026 but remains pending.
- Further strain from potential U.S. tariffs up to 100% due to India's import of Russian crude oil and natural gas.
