EU and India finalise trade negotiations

04 February 2026

Container ship

On 27th January 2026, after nearly 20 years, the European Commission concluded negotiations with India on a trade agreement.

Negotiations on the India-EU free trade agreement started in 2007, with talks suspended in 2013. Negotiations reopened in 2022 and successfully concluded in January 2026.

We are still waiting sight of the agreement, but understand that it will eliminate or reduce tariffs on over 90% of EU goods including key sectors such as machinery, pharmaceuticals and chemicals. Moreover, the EU has secured tariff reductions and a 250,000-vehicle quota for EU cars, as well as the promise that tariffs on car parts will be eliminated after 5 -10 years.

What does the agreement mean for agriculture?

From an agri-food perspective, the agreement will substantially reduce or eliminate high Indian tariffs on a targeted range of products where EU exports already have a presence or clear growth potential.

Key outcomes include:

  • Wine, spirits and beer: significant reductions in tariffs from up to 150% to up to 50% for beer, 40% for all spirits and 30% for most wines. The agreement will also establish a working group for cooperation and information exchange on wines and spirits, including oenological practices.
  • Olive oil and other vegetable oils: full tariff elimination over 5-year staging period with a reduction from up to 45% down to 0%.
  • Processed foods, such as breads, pastries, biscuits, pasta, chocolate and pet food: full tariff elimination, with a reduction on tariffs from up to 50% down to 0%.
  • Fruit juices and non-alcoholic beverages: staged tariff elimination to 0% over 5 years, down from 55%.
  • Kiwis and pears: tariff reduction in quota, down from 33% to 10%.
  • Sheep meat: staged tariff elimination down from 33% to 0%.
  • Sausages and other meat preparations: tariff reduction, from up to 110%, down to 50%.

Protection of sensitive EU agricultural sectors

The most sensitive agricultural products for the EU and India have been excluded from liberalisation. The EU maintains its current level of protection for beef, poultry, sugar, rice, dairy products (including milk powder), honey, bananas, garlic, soft wheat and ethanol.

Where openings have been agreed on sheep and goat meat, sweetcorn, table grapes, cucumbers, dried onions, rum made of molasses and starches, the volumes are restricted through tariff-rate quotas. We are still awaiting confirmation of the quotas.

The agreement includes a bilateral safeguard mechanism, a sanitary and phytosanitary chapter, and a trade and sustainable development chapter which includes provisions on environmental protection and climate change, protecting workers’ rights and supporting women’s empowerment. All imports from India to the EU will be required to adhere to the EU’s sanitary and phytosanitary rules.

The parties have also committed to sign a Memorandum of Understanding that will establish an EU-India platform for cooperation and support on climate action. Moreover, the EU has pledged €500 million over the next two years to support India’s sustainable industrial transition and accelerate its reduction in greenhouse gas emissions.

What’s next?

Shortly the negotiated texts, including more details on quotas and other chapters, will be published, as well as the outcomes of parallel negotiations on a Geographical Indications Agreement, which is of particular importance for many farming sectors.

Following publication, the agreement will need to be approved by the European Council. After which the EU and India can sign it. Before final implementation, the agreement will need to pass through the European Parliament and be ratified by India.

UK-India trade agreement

In July 2025, the UK signed a trade agreement with India following 3 years of negotiations. Within agri-food, the government has secured tariff reductions for whisky and gin, salmon, chocolate, biscuits and lamb – with the latter of these a key ask of the NFU.  

Some of the most sensitive products for the UK were excluded from the agreement, with the maintenance of the UK’s current level of tariffs for imports of sugar, chicken, eggs and pork.

In contrast to the EU agreement, the UK dairy market was liberalised without securing any reciprocal access for British cheese and dairy to the Indian market.

In response to the agreement NFU President Tom Bradshaw said, “The cumulative impact of ever greater access to our domestic food markets in trade deals cannot be overlooked and is something our government must seriously consider.”

Ask us a question about this page

Once you have submitted your query someone from the team will contact you. If needed, your query will then be passed to the appropriate NFU policy team.

By completing the form with your details on this page, you are agreeing to have this information sent to the British Agriculture Bureau for the purposes of contacting you regarding your enquiry. Please take time to read the BAB and NFU’s Privacy Policy if you require further information.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.