The India-EU Free Trade Agreement (FTA), finalized just a few days ago on January 27, 2026, is being called the "Mother of all Deals." It is a massive development because it ends nearly 20 years of negotiations and creates a free trade zone of 2 billion people. Here is the breakdown of the news in English:
1. Massive Tariff Cuts
For India: The EU will eliminate tariffs on 99% of Indian exports (by value). This is huge for India’s textile, leather, and gem industries, which will now have duty-free access to Europe.
For Europe: India has agreed to slash its infamously high tariffs on European luxury goods.Cars: Tariffs will drop from 110% to just 10% (for a quota of 250,000 vehicles).
Wines & Spirits: Duties will be cut from 150% down to 20-40%.
Machinery & Chemicals: Most will see tariffs go down to 0%.
2. Strategic "Market Diversification"
The timing is critical. Both India and the EU are trying to reduce their economic dependence on the United States (due to Trump’s aggressive tariff policies) and China. By joining forces, they are creating a more stable, rules-based trade corridor.
3. Impact on Pakistan
This is the "Red Alert" part for Pakistan.Loss of Advantage: Previously, Pakistan enjoyed an edge over India in the EU market due to the GSP+ status (Zero or low duties).
Equal Competition: With this new FTA, Indian textiles and apparel will now enter Europe on the same (or better) terms as Pakistan. Experts warn this could threaten up to $9 billion worth of Pakistani exports.
4. What’s Next? (The Timeline)
Legal Vetting: The text is currently being finalized.
Ratification: The deal needs to be approved by the European Parliament and the Indian Cabinet.Entry into Force: It is expected to officially start by early 2027, though some tariff cuts will begin in phases almost immediately after signing.#WhenWillBTCRebound #PreciousMetalsTurbulence #CZAMAonBinanceSquare #USPPIJump
