The European Union is intensifying efforts to finalize free trade agreements across the Asia-Pacific, targeting new accords with Malaysia, Thailand, the Philippines, and Australia. This strategy follows on the heels of a landmark trade pact recently signed with India, encompassing a significant portion of global economic activity.
Germany’s foreign minister, Johann Wadephul, announced in Singapore on Monday that the EU is aiming to swiftly advance trade negotiations with several Asia-Pacific economies. The renewed push comes after India and the EU concluded a trade agreement last week, a result of twenty years of discussions. The recent deal is expected to influence roughly 25% of the world’s economic output and is seen as a notable milestone in India’s trade policy.
The newly agreed deal will create a combined market of approximately two billion people, as both sides look to diversify trading relationships in response to shifting dynamics with the United States. The arrangement will open India’s extensive and previously protected marketplace to businesses from the 27-member EU, currently its largest trading partner.
An official announcement detailing the agreement is expected later at a joint summit in New Delhi, where Indian Prime Minister Narendra Modi and EU President Ursula von der Leyen will present further terms. The deal follows recent EU trade agreements with other global partners, including Mercosur, Indonesia, Mexico, and Switzerland, while India has secured separate pacts with Britain, New Zealand, and Oman.
The accord offers India, which has recently contended with U.S. tariffs—most notably a 50% duty introduced by President Donald Trump, substantial relief and access to new export markets. Over the past year, India has been broadening its trade links to mitigate the effects of such measures.
The agreement’s formal signing is anticipated following a legal review process expected to last five to six months, according to a senior Indian government official.
