India and EU Finalize Landmark Free Trade Agreement; Canada Relaunches Talks

India and the European Union have finalized a landmark free trade agreement (FTA) after more than a decade of negotiations, a move projected to significantly boost trade between the two economic powers. According to Tekedia, the comprehensive deal will slash tariffs on 96.6% of traded goods. Projections indicate the agreement could double EU exports to India by 2032 and save European companies an estimated €4 billion in annual duties.

A key provision of the agreement is a five-year Most Favored Nation (MFN) clause, which prevents either party from offering more favorable tariff terms to other countries during that period, as reported by Tekedia. The deal also includes commitments on digital trade, sustainability, and customs facilitation, with both sides agreeing to align food safety and plant health measures with WTO standards to speed up the clearance of goods. However, sensitive agricultural products such as beef, dairy, and sugar are excluded from the tariff reductions.

 
The finalization of the EU pact comes as India re-engages with other major trading partners. According to CTV News, Canadian Finance Minister François-Philippe Champagne confirmed that the federal government is once again “exploring” a formal free-trade agreement with India, signaling a reset in relations after talks were paused in 2023 due to political tensions. Champagne noted that India also sees significant benefits in deepening its economic ties with Canada. Prime Minister Mark Carney is seeking to diversify Canada’s trading partners, and the two countries had previously agreed in November 2025 to launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA).