Spain's Albares Confirms India-EU Trade Deal Nearing Completion

India-EU Trade Deal and Defense Cooperation

By Victoria Waldersee

Overview of the Trade Agreement

NEW DELHI, Jan 21 (Reuters) - A historic India-EU trade deal will likely be concluded in the next few days, Spain's Foreign Minister José Manuel Albares said on a visit to New Delhi on Wednesday, framing the agreement as a measure of security against economic coercion.

Potential Economic Partnerships

The deal, coming on the heels of an agreement signed on Monday between the European Union and Mercosur, would create the world's largest free-trade zone, a powerful signal as U.S. President Donald Trump imposes steep tariffs on India and threatens higher tariffs on Europe for its refusal to support his plans to take Greenland against its will.

Defense Collaboration Initiatives

"Everything is going forward perfectly. We do not expect any obstacle," Albares said after bilateral meetings with India's Foreign Minister Subrahmanyam Jaishankar and President Droupadi Murmu in Delhi.

"We need to make clear to the whole world that we believe in free trade and have the instruments of dissuasion to protect ourselves from any economic coercion," Albares said.

European Commission President Ursula von der Leyen is expected to arrive in India on Sunday evening to finalise the sticking points - primarily over carbon levies and import duties for key sectors such as autos and steel - ahead of an EU-India summit on January 27.

Von der Leyen has said the deal would create a market of 2 billion people, accounting for nearly a quarter of global GDP.

Trade in goods between the EU and India has increased by almost 90% in the past decade, according to EU data, valued at 120 billion euros ($140.47 billion) in 2024.

CLOSER DEFENCE TIES

Addressing the Spanish delegation on Wednesday, India's Foreign Minister Jaishankar said he saw "considerable potential" for more economic partnerships between the two countries, singling out a joint commitment to building resilient manufacturing capabilities in defence.

A joint venture between Airbus and Indian conglomerate Tata Group to build C-295 aircraft in India was an example of the type of trade relationship that should be replicated, Albares added.

The first made-in-India Airbus aircraft, produced at a joint facility with Indian conglomerate Tata Group in the western state of Gujarat, is expected to roll off production lines before September 2026, Jaishankar said, slightly ahead of schedule.

($1 = 0.8543 euros)

(Reporting by Victoria Waldersee, editing by YP Rajesh, Bernadette Baum and Sharon Singleton)