The Free Trade Agreement between the European Union and India was recently announced. Ursula von der Leyen has called it “The Mother of All Agreements,” the culmination of two decades of hesitant and intermittent negotiations.
At the trade level, this means eliminating reciprocal tariffs on 90% of traded goods. Dairy products and cereals, which are critical items (a major stumbling block in the agreement with MERCOSUR), remain excluded for the time being. Europe is opening its market to Indian textiles in exchange for gradually reducing tariffs on European industrial, chemical, pharmaceutical, automotive, and wine products. This will result in one of the world’s largest trade corridors , linking the world’s fourth-largest economy and most populous country with the affluent Old Continent.
Especially for Spanish agricultural exports , olive oils, sheep meat, sausages and processed foods (breads, cakes, biscuits, pasta, chocolate, pet food) are granted a 0% tariff .
In addition to reducing tariffs, administrative burdens will be simplified, and trade will be made easier, cheaper, and faster. This will help EU businesses and farmers export more. The agreement is expected to double EU exports to India. It will also improve access to the Indian market for financial services, maritime services, and other key future sectors.
The fine print of the agreement highlights the aspects related to maritime services that would benefit in the following ways:
1. International maritime transport
Operation of European shipping lines between Indian ports and third countries.
Elimination or reduction of restrictions on foreign participation in shipping companies.
Greater freedom to set fares, routes and frequencies, without regulatory interference.
2. Port services
Management and operation of port terminals (containers, bulk, Ro-Ro).
Access for European companies to port concessions on equal terms.
Port loading, unloading, storage and logistics services.
3. Shipping agencies and consignees
Right to establish own agencies or subsidiaries in Indian ports.
Provision of services to European and third-country vessels:
management of port calls, coordination with port authorities, customs and documentary procedures.
4. Auxiliary services to maritime transport
It includes high value-added activities:
Chartering and maritime brokerage, fleet management, inspection and certification services, ship classification, technical and maintenance services.
5. Maritime and multimodal logistics
Integration of maritime transport with rail, road and logistics platforms.
Operation of logistics centers, container depots and free zones.
Digitization of the logistics chain (one-stop shop, traceability).
6. Services linked to the green transition
A point that is becoming increasingly relevant:
Supply of alternative fuels (LNG, methanol, hydrogen).
Energy efficiency and decarbonization services for maritime transport.
Infrastructure for green ports and electrification of docks.
Currently, India maintains limits on foreign investment in some maritime services, mandatory local presence requirements, and preferential treatment for national operators.
In principle, improved access to maritime services will allow European shipping lines and operators to manage routes, ports, and logistics services in India with fewer restrictions, strengthening supply chain links between Europe and the Indo-Pacific . This reinforces the much-desired IMEC corridor , which aims to counter China’s Belt and Road Initiative.
However, it is clear that its implementation is contingent upon the Gaza War and the Saudi-Israeli understanding, which does not seem imminently easy to achieve.
Time will tell, but this agreement promises to be the mother of all agreements.
