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30m ago

India and EU Poised to Unveil Trade Deal on Jan. 27 as Talks Enter Final Stretch

EU momentum from the Mercosur signing, together with U.S. tariff pressure on Indian exports, is propelling both sides to lock in alternative market access.

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Brazilian President Luiz Inacio Lula da Silva, right, and European Commission President Ursula von der Leyen shake hands on the sidelines of their meeting about the EU-Mercosur trade agreement in Rio de Janeiro, Brazil, Friday, Jan. 16, 2026. (AP Photo/Bruna Prado)
Meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)
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Overview

  • Negotiators say 20 of 24 chapters are closed, with virtual talks ongoing to finish remaining market‑access files before EU leaders arrive in New Delhi.
  • European Commission President Ursula von der Leyen and European Council President António Costa will be Republic Day chief guests and plan to co‑chair the Jan. 27 summit where an announcement is targeted.
  • Key sticking points include the EU’s Carbon Border Adjustment Mechanism and automobile access, which India seeks to temper through carve‑outs and phased openings.
  • Officials indicate sensitive farm issues on both sides are excluded, with dairy cited as a red line for India in recent rounds.
  • The EU’s freshly signed Mercosur pact underscores Brussels’ wider trade push, while India views the EU market as a crucial outlet as some exports face U.S. tariffs of up to about 50 percent.