EU–India FTA: Between Hype And Reality
Taken together, these realities suggest that the path from signing to enforcement may be far longer and more uncertain than the initial hype implied. While the EU–India FTA promises significant economic opportunities and strategic advantages, the deal’s ultimate success will depend on navigating the complex political dynamics within the European Parliament and responding to broader geopolitical considerations.
The signing of the European Union–India Free Trade Agreement (FTA) on 27 January in New Delhi was greeted with great enthusiasm, hailed by some as the “mother of all deals.” Yet, as the initial euphoria fades, it is necessary to take a more measured look at both the promise and the challenges of the agreement.
Some media reports and commentators in India have mistakenly portrayed the FTA as a concluded deal ready for immediate implementation, but this is far from the truth. The signatures in New Delhi marked only the conclusion of negotiations, which took nearly 20 years to finalize. Talks between Brussels and New Delhi began in 2007 but soon stalled over differences on key issues, including agriculture and automobile tariffs. Negotiations were relaunched in 2022 and gained momentum last year amid concerns over the economic impact of U.S. President Donald Trump’s tariff wars and trade threats.
However, before the agreement can be implemented—even provisionally—it must undergo a lengthy ratification process in the EU. This includes approval by the European Council, the representative body in Brussels of the EU’s 27 member states, and by the European Parliament, the bloc’s only directly elected body. History shows that this stage can be arduous and time-consuming, often shaping the final contours of any EU trade deal.
While the Council negotiates and signs the deal, the Parliament is a real veto point, and often considered the most politically difficult stage of the process. “This is just the conclusion of negotiations and now we have to go through number of procedure, “ European Commission’s chief spokesperson Paula Pinho told journalists in Brussels.
“Once the agreement has been adopted by the Council then there could be the formal signature of the agreement between the EU and India, and its only at that stage that one would speak if necessary of provisional application. We are not there yet,” she clarified.
Long Process To Ratification
After the negotiated draft texts are published, they undergo legal revision and translation into all 24 official EU languages. The agreement is then submitted to the Council for signature and conclusion, followed by signature by both the EU and India. Crucially, the European Parliament must ratify the deal—a stage widely regarded as the most difficult. Only after Parliament’s approval can the Council formally conclude the agreement, allowing it to enter into force, the spokesperson clarified.
While no official timeline has been given, optimistic estimates suggest the process could take about a year, whereas more cautious assessments indicate it may take longer.
A Swiss newspaper Weltwoche commented that “years of discussions about details and legal technicalities lie ahead. And of course, approval by the EU Council and Parliament will be required before anything can get off the ground, so nothing will happen before 2030. What is clear is that India has gained more advantages. Textiles and leather goods will flow into the EU in even greater quantities, “ it noted.
Sensitive issues such as raw materials and agriculture have been excluded as a precaution from the much publicized deal, it noted.
The European Parliament has previously frozen the ratification of other trade deals, most recently the Mercusor deal with Latin America and the EU-US trade deal. In January, EU lawmakers voted narrowly to challenge the Mercusor deal in EU's Court of Justice, a move that could derail the deal. The deal was finalised on 17 January after 25 years of negotiations between the 27-nation EU and South American countries Argentina, Brazil, Paraguay and Uruguay to create one of the world’s largest free trade areas.
Navigating Complex Political Dynamics
Opponents of the deal argued that Mercosur could increase imports of cheap beef, sugar and poultry to the EU undercutting domestic farmers. Farmers across Europe have protested against the deal in recent months. Further, the European Parliament put the ratification of the EU–US trade deal, signed in July by US President Donald Trump and European Commission President Ursula von der Leyen, on hold after the White House threatened tariffs on European countries supporting Greenland. The freeze reflected the Parliament’s concern over the potential economic and political impact of the US threats. Once Trump withdrew the tariff threats, the Parliament’s lead negotiators scheduled a meeting on 4 February to decide the next steps, highlighting how political disputes can influence the ratification of trade agreements.
This episode serves as a reminder of the complex challenges the EU–India FTA could face before it comes into force. However, seasoned observers see a strong backing by the European Parliament and the EU member states who see India as a key strategic partner. The largest groups in Parliament (European People’s Party, Renew, and Socialist group S&D) are generally supportive of trade agreements, especially with democratic partners like India. Market access, diversification away from China, and investment opportunities make the EU-India FTA attractive to many EU member states and Members of the European Parliament.
Smaller political groups like the leftists and extreme right may raise issues related to human rights or child labour exploitation in India. However, they lack sufficient votes to block the agreement outright. Still, the Parliament’s past actions demonstrate that ratification is rarely automatic—it can be delayed, conditioned on political concessions, or accompanied by resolutions that press for enforceable commitments on labor, sustainability, and governance.
Taken together, these realities suggest that the path from signing to enforcement may be far longer and more uncertain than the initial hype implied. While the EU–India FTA promises significant economic opportunities and strategic advantages, the deal’s ultimate success will depend on navigating the complex political dynamics within the European Parliament and responding to broader geopolitical considerations.
This reality casts a more cautious light on the much-hyped “mother of all deals,” suggesting that the path from signing to enforcement may be far longer and more uncertain than the initial euphoria implied.
No doubt, the FTA when finally ratified will be a win-win situation for both Brussels and New Delhi . It will strengthen economic and political ties between the two economic and political giants at a time of rising geopolitical tensions and global economic challenges. The deal will reduce tariffs and administrative burdens, making trading easier, cheaper and faster.
(The author is an Indian journalist who is a long time resident in Brussels and has been covering European and EU affairs for the past 40 years. Views expressed are personal . He can be reached at nawab_khan@hotmail.com X: @NawabKhan10)

Post a Comment