The EU-India Free Trade Agreement (FTA), often called the “mother of all deals,” marks a historic breakthrough after nearly two decades of negotiations. Concluded on January 27, 2026, during the India-EU Summit in New Delhi, the deal aims to slash tariffs on the vast majority of goods traded between the two sides, creating preferential access in a combined market of about 2 billion people and roughly 25% of global GDP.
For Greece, the agreement offers clear opportunities, particularly in the agri-food sector, while presenting some limitations in others.
Key Gains for Greece and the EU
Greek olive oil stands out as a major beneficiary. Indian tariffs on olive oil, currently up to 45%, will be phased down to zero over five years. This opens India’s growing market to Greek, Italian, and Spanish producers, who dominate high-quality extra virgin olive oil exports. Other processed agri-food items, such as certain foods, juices, and meat products (including from sheep or lamb), will also see tariffs eliminated, providing broader advantages for Greek exporters in Mediterranean staples.
The EU overall secures significant market access:
- Tariffs on European vehicles will drop from 110% to 10% under a quota of 250,000 units per year, with full reductions over time.
- Auto spare parts, aeronautics, electrical/medical equipment, chemicals, and pharmaceuticals will see duties abolished within 5–10 years.
- Wine tariffs fall from 150% to as low as 20–30% (though full liberalization is phased), benefiting producers in Greece, France, and Italy.
- The European Commission estimates annual savings of around €4 billion in duties on EU products, with EU goods exports to India potentially doubling by 2032.
Bilateral goods trade already exceeds €120–180 billion annually (with figures varying by source and year), and the deal supports stronger supply chains, job creation, and reduced reliance on volatile partners amid global trade tensions.
Losses and Limitations
Sensitive sectors remain protected to safeguard domestic interests. Wines and spirits are partially excluded or phased in cautiously—India’s high tariffs on these (up to 150% for wine) drop but not to zero immediately, limiting immediate gains for Greek and other European producers compared to olive oil.
India retains tariffs on certain agricultural exports to the EU, such as beef, sugar, rice, poultry, milk powder, honey, bananas, soft wheat, garlic, and ethanol. “Safety valves” or protection clauses allow targeted measures if any sector faces disruption from increased imports.
The agreement excludes or limits liberalization in highly sensitive areas to prevent destabilization of local markets.
Broader Context and Timeline
The deal was accelerated by geopolitical shifts, including U.S. tariff policies, prompting both sides to diversify trade ties. India is the EU’s ninth-largest trading partner (about 2.4% of EU goods trade in 2024), but the FTA promises substantial growth.
Negotiations are complete, but formal steps remain: legal scrubbing, publication of texts, approval by the EU Council and Parliament, and ratification by India and member states. Implementation is expected in 2026 or early 2027, per statements from Indian Minister Piyush Goyal and the European Commission.
Overall, Greece gains a competitive edge in premium agri-food exports like olive oil to one of the world’s fastest-growing consumer markets, though full benefits in sectors like wine will unfold gradually. The agreement strengthens EU-India ties in an era of shifting global trade dynamics.
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