India, EU Unite Against Tariffs and Protectionism Amid Global Trade Turbulence

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European Council President Antonio Costa believes that a strengthened partnership between India and the European Union (EU) can be a stabilising force in the face of rising protectionism and geo-economic uncertainty. Costa, who attended the Republic Day celebrations in India, said that the two nations can work together to promote stability and reliability in international relations, protecting the rules-based order. The EU is India's largest trading partner, with trade worth €120 billion in 2024, and is expected to become a strong advocate for free and open commerce. The India-EU Summit is set to conclude negotiations for a free trade agreement (FTA), which could boost Indian exports like textiles and jewellery, currently hit by 50% US tariffs. Costa highlighted the importance of the Security and Defence Partnership, which will build on existing cooperation in cyber security, counter-terrorism, and maritime security. The partnership aims to preserve security in the Indo-Pacific and ensure free and open trade between the region and the Atlantic. The India-EU trade deal is seen as a key geopolitical stabiliser, demonstrating the possibility of protecting international rules-based trade. Once signed and ratified, the agreement could send a strong message against tariffs and protectionism, promoting a rules-based trade order in a world where some countries are increasingly turning to tariffs. India and the EU are expected to sign the FTA and finalise the Security and Defence Partnership during the India-EU Summit. The EU's share of foreign direct investment in India has grown to €140.1 billion in 2023, underscoring the potential for increased cooperation between the two nations.