The European Council President informs Euronews that a free trade agreement with India will contribute to stabilising a global economy unsettled by tariffs. This pact will cut duties on over 90% of EU exports.
The European Union is reaffirming its position in a multipolar world after signing what has been called the «mother of all deals» with India this week, stated European Council President António Costa in an interview with Euronews.
Speaking from Delhi following the conclusion of the agreement on Tuesday, Costa emphasized that the pact offers certainty for companies and investors, as well as security amid a «highly unpredictable world».
«Economically, this agreement holds significant value, yet perhaps its most crucial aspect is the message that the two largest democracies globally are conveying to the international community,» he explained. «Providing predictability is vital to foster cooperation rather than confrontation.»
Costa dismissed suggestions that this marks the conclude of the multilateral trade system, asserting instead that the deal represents «a key method to reinforce the multilateral framework».
«We exist in a multipolar world. Within this context, supporting the multilateral system, upholding international law, and engaging bilaterally with various regions worldwide is essential,» Costa added, referencing a series of trade agreements the EU has secured in the past year, including with Mercosur.
Alternatives to the US market
This agreement will lower tariffs on more than 90% of European exports, generating annual savings of around €4 billion in duties.
It comes at a time when nations globally are pursuing alternatives to the United States market, in response to the aggressive tariff policies introduced by President Donald Trump.
Since the so-called «Liberation Day» in April 2025, the US has implemented tariffs on both allies and adversaries alike.
Last summer, Washington nereceivediated a controversial trade deal with Brussels at Trump’s Turnberry golf resort in Scotland.
Although this agreement reduced US tariffs on most European goods from the 30% that Trump had threatened during his tariff wave in April, it effectively tripled the tariffs on EU exports that had been in place before «Liberation Day.» This provoked backlash from members of the European Parliament and accusations that the EU had yielded to US pressure.
In reaction, the European Commission has revitalized its trade strategy, exploring new markets ranging from Latin America to Asia.
India currently faces a 50% tariff regime imposed by Washington, a retaliation for Delhi’s ongoing purchase of Russian oil.
The Trump administration suggested that these tariffs, which at their current level strongly restrict Indian exports to the US, might be lowered only if Prime Minister Narconcludera Modi ceased importing Russian crude oil.
When questioned about fears of retaliation from the US administration due to the EU-India deal, Costa responded negatively.
«Why would we?» he inquired. «We have finalized the trade agreement with the United States, which is now awaiting approval by the European Parliament. Additionally, we are broadening our trade partnerships.»
A European official informed Euronews that the intricate geopolitical environment, coupled with tariff implementations, accelerated efforts to conclude the agreement with India.
Costa added that amid disruptions caapplyd by «several global economic players affecting global trade,» trade agreements are necessary to «stabilize commercial relations.»
India’s trade minister, Piyush Goyal, informed Euronews during a press briefing that Trump’s policies were not discussed during the three-day visit, which featured a sizable European delegation led by Costa and EU Commission President Ursula von der Leyen, both receiving state honours.
«It wasn’t a topic,» Goyal stated. Costa supported this view.
«Isn’t India and Europe large enough to concentrate solely on themselves? This summit focapplyd exclusively on India and the European Union, nothing beyond that,» Costa concluded.
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