India, EU seal free trade deal

New Delhi, Jan. 28:  After nearly two decades of negotiations, India and the European Union announced Tuesday they have reached a free trade agreement to deepen economic and strategic ties. The accord — dubbed the "mother of all deals" — could impact as many as 2 billion people.

The deal is also one of the biggest bilateral engagements on commerce and comes as Washington targets both India and the EU with steep import tariffs.

"This agreement will bring major opportunities for the people of India and Europe," India's Prime Minister Narendra Modi said in a virtual address to an energy conference. "It represents 25% of the global GDP and one-third of global trade."

India and the EU also agreed on a framework agreement for deeper defense and security cooperation, and a separate pact aimed at easing mobility for skilled workers and students, signaling their partnership extends beyond commerce.

Speaking at a joint news conference in New Delhi with European Commission President Ursula von der Leyen and European Council President António Costa, the Indian leader said the partnership with the EU "will strengthen stability in the international system" at a time of "turmoil in the global order."

Washington is targeting both India and the EU with steep tariffs, disrupting established trade flows and pushing major economies to seek alternate partnerships. The negotiations for the India-EU deal got a new impetus after U.S. President Donald Trump's strong-arm tactics over tariffs and Greenland.

"Europe and India are making history today. We have concluded the mother of all deals," von der Leyen said in a post on X.

In a speech later, she said the accord was a tale of "two giants" — the world's second and fourth largest economies — "who chose partnership, in a true win-win fashion." She also said it sends "a strong message that cooperation is the best answer to global challenges."(AP)