Analysing the EU-India trade agreement
Ireland’s economic success has long depended on free trade. Since former Taoiseach Seán Lemass and civil servant TK Whitaker began opening the Irish economy to international markets in the late 1950s and early 1960s, Ireland has prospered by exporting goods and services across the world, writes Billy Kelleher MEP.
Our ability to trade freely, or at least with reduced tariffs and barriers, transformed Ireland from a protected, largely agricultural economy into one of the world’s most open and export-driven economies.
Initially, our growth was driven by access to European markets through the European Union. Today, as global trade continues to evolve, Ireland must continue seeking new and diversified markets.
That is why the proposed trade agreement between the EU and India is such a significant development. India, with a population of more than one billion people and a rapidly expanding middle class, represents one of the most important emerging markets in the world.
Together, the EU and India would form a trading partnership approaching two billion people; one of the largest economic blocs globally. For Irish exporters in sectors ranging from food and drink to pharmaceuticals, financial services, and advanced manufacturing, the opportunities are substantial.
Historically, India maintained a relatively closed market with high tariffs and significant barriers for European exporters. Once this agreement is fully implemented, those barriers will be significantly reduced across a broad range of sectors.
The deal is expected to eliminate or reduce tariffs on most EU exports to India, with particularly important gains for industries such as whiskey, machinery, pharmaceuticals, agri-food, and financial services. Tariffs on products such as wines and spirits are expected to fall dramatically, while sensitive European agricultural sectors will continue to receive protections.
More than 93 per cent of tariffs on goods are expected to be abolished, potentially doubling EU exports to India over time.
At a time when both the EU and India have faced increasing protectionism and tariffs from the United States, this agreement also carries important strategic value. It will help both economies reduce exposure to external trade shocks and support long-term economic growth and stability.
For Ireland in particular, this matters enormously. Our economy depends on openness, competitiveness, and access to international markets. We produce far more food and drink than our domestic market can consume, and our prosperity relies on our ability to sell internationally.
“Ireland is simply too small and too export-dependent to turn inward.”
Billy Kelleher MEP
The benefits for Ireland’s whiskey sector alone could be transformative. Tariffs are expected to fall from 150 per cent to 33 per cent, creating major opportunities for Irish distilleries and the wider tillage sector that supports them. This is especially important at a time when uncertainty in the US market has increased significantly in recent years.
The agreement also has an important geopolitical dimension. Europe cannot afford to become overly dependent on any single trading partner. If Brexit demonstrated anything, it is the importance of diversifying export markets and strengthening economic resilience.
However, modern trade agreements are not solely about economics. They also establish obligations and standards for all participants.
The EU-India agreement is expected to include commitments on workers’ rights, sustainability, and gender equality. These provisions have the potential to improve protections for vulnerable and marginalised groups while encouraging higher labour and environmental standards.
Ireland’s own experience demonstrates how economic integration can support social progress. Membership of the then-European Economic Community in 1973 helped drive major advances in workers’ rights, equality protections, and living standards across Irish society. Free and fair trade, when accompanied by strong rules and standards, can expand opportunity and improve quality of life.
Environmental protections are also central to the agreement. Both the EU and India would commit to implementing the Paris Climate Agreement and supporting the transition towards net-zero economies. Embedding climate obligations within international trade agreements is essential if economic growth is to remain sustainable.
Another often overlooked aspect of trade agreements is consumer protection and product safety. Concerns about unsafe toys, cosmetics, and low-quality imports entering the European market have grown in recent years, particularly through online platforms.
This agreement should strengthen regulatory cooperation between the EU and Indian authorities, improving standards enforcement and helping ensure better compliance with European safety rules.
The debate around the EU-India agreement also inevitably recalls Ireland’s opposition to the EU-Mercosur trade agreement. In my view, that should remain the exception rather than the norm for a state that has consistently benefited from free trade.
The India agreement appears to strike a stronger balance between market access and sustainability commitments.
I have long supported ambitious and balanced trade agreements, including the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. More recently, the EU also concluded a further trade agreement with Australia.
Ireland is simply too small and too export-dependent to turn inward. Expanding access to profitable international markets is essential to sustaining jobs, investment, and economic growth.
At the same time, diversification does not only mean looking to distant markets. Ireland should also place greater emphasis on increasing exports to Eastern Europe, where our trade links remain comparatively underdeveloped. Poland, for example, is now a trillion-euro economy with a rapidly growing middle class and significant opportunities for Irish exporters.
Trade agreements such as those with India and Australia are therefore essential to the future prosperity of both Ireland and the EU. They represent not only economic opportunity, but also strategic resilience in an increasingly uncertain world.
For those reasons, I look forward to supporting these agreements when they come before the European Parliament.
Billy Kelleher MEP was elected to the European Parliament representing Ireland South in 2019. He is a former Irish Minister for Trade, Commerce and Labour Affairs.
