- Country or region
- India
- Trade topics
- Negotiations and agreements
- EU exporter
- Latvia
Strengthening economic and political ties at a time of rising geopolitical tensions and global economic challenges
- The largest trade agreement that either the EU or India have ever concluded.
- A combined market of two billion people and close to a quarter of global GDP.
- Cutting 96.6% of tariffs is expected to double the EU’s annual exports to India.
- Upholding European standards and promoting sustainable trade.
Key facts about India
- India has a GDP of €3.4 trillion, and it is the EU’s 9th largest trading partner.
- Latvian exports to India: €87 million (goods and services; 2025 data).
- Total stock of bilateral foreign direct investment between Latvia and India: €9 million (2024).
- Latvian jobs supported by Latvian and EU exports to India: 2,835 (2023).
Key benefits for Latvian exporters
- 134 companies from Latvia currently export to India, and this is poised to increase, thanks to this deal and to the new opportunities it creates.
- Tariffs on 96.6% of EU goods exports will be eliminated or reduced, creating new opportunities.
- Savings of up to €4 billion per year in duties on European products.
- Competitive advantage for Latvian exporters, with the biggest trade opening India has given to any trade partner.
- Simplification of customs procedures to make exports quicker and easier.
- A dedicated chapter to enhance information for small businesses and explore other facilitation measures.
The agreement includes a bilateral safeguard mechanism, providing a targeted response in the unlikely event of market disruption arising directly from the deal. This will apply to both industrial and agricultural imports alike.
Boosting Latvian exports to India
Latvia already exports €49 million per year in goods only. The new agreement with India will boost trade and create new business opportunities in key industrial sectors, such as:
| PRODUCT | EXPORT VALUE, €m |
|---|---|
| Electrical machinery and equipment | 8 |
| Wood and wood products | 8 |
| Organic chemicals | 5 |
New opportunities for Latvian farmers
- Unmatched agricultural market access, compared to India’s other trade agreements, while protecting sensitive agricultural sectors.
- Latvian agri-food exports to India amounted to €1 million in 2025, mainly constrained by India’s high tariffs on EU agri-food products (of over 36% on average).
- The agreement will remove or reduce most of those tariffs, helping EU exporters to reach the full potential of a market of 1.5 billion people.
- To illustrate the potential: EU agri-food exports to China are 10 times bigger than to India (€13 bn vs. €1.3 bn). China is a market of comparable size, but with an average agri-food tariff rate of 11%. Chinese tariffs on wine are between 14-20%, while India currently charges 150%.
| PRODUCT | CURRENT TARIFFS | FUTURE TARIFFS |
|---|---|---|
| Wine | 150% | 20% (premium range); 30% (medium range) |
| Spirits | Up to 150% | 40% |
| Beer | 110% | 50% |
| Olive oil, margarine and other vegetable oils | Up to 45% | 0% |
| Kiwis and pears | 33% | 10% in-quota |
| Fruit juices and non-alcoholic beer | Up to 55% | 0% |
| Processed food (breads, pastries, biscuits, pasta, chocolate, pet food) | Up to 50% | 0% |
| Sheep meat | 33% | 0% |
| Sausages and other meat preparations | Up to 110% | 50% |
- Sensitive European agricultural sectors are fully protected: EU tariffs on products such as beef, chicken meat, rice and sugar stay in place. All Indian imports must respect the EU’s strict health and food safety rules, with no exception.
- The EU and India are currently negotiating a separate agreement on Geographical Indications (GIs), which will help exporters to sell more traditional EU farming products in India, by removing unfair competition in the form of imitations.
For more information: Factsheet on the benefits of the EU-India FTA for EU farmers
Ambitious services commitments
- Privileged access to the Indian services market in key sectors, such as financial services and maritime transport.
- Commitment to maintain the ambitious level of openness of the services sector, which exceeds India’s commitments with any other trading partner, including the UK and Australia.
- Enhanced transparency through obligations on senior management and boards of directors and local presence.
- Austria exported €38 million worth of services to India in 2025.
Intellectual property protected
- The agreement provides a high level of protection and enforcement of intellectual property rights, including with respect to copyright, trademarks, designs, the protection of trade secrets and undisclosed information, and plant varieties.
- The agreement foresees that each Party will have measures, procedures and remedies to ensure the enforcement of intellectual property rights.
Fostering sustainable trade
The agreement’s trade and sustainable development chapter sets out a comprehensive framework on trade and sustainable development, which:
- Enhances environmental protection and addresses climate change;
- Protects workers’ rights;
- Supports women’s empowerment;
- Provides a platform for dialogue and cooperation on trade-related environmental and climate issues, and;
- Offers an effective implementation mechanism.
It protects both Parties’ right to regulate and makes sure that the Parties will not weaken, waive, or fail to enforce their laws to encourage trade or investment.
Finally, the agreement also offers civil society organisations an active role in monitoring its implementation.