Issue link: https://maltatoday.uberflip.com/i/1542865
Historic EU-India agreement shows a different way is possible 10 maltatoday | WEDNESDAY • 28 JANUARY 2026 OPINION Ursula von der Leyen President European Commission WHEN historians look back on 2025, they will remember it as the year when the frac- tures in the global order be- came impossible to ignore. Tariffs. Export controls. Eco- nomic dependencies. They be- came instruments of pressure and in some cases, weapons. These trends did not start last year, global trade barriers had already tripled in the year be- fore. But 2025 was when they moved from the margins to the mainstream—when fragmen- tation stopped being a risk and became a reality. The headlines and news bul- letins told a story of conflict and protectionism: of coun- tries turning inward, raising new barriers, and weaponising interdependence. That story reflects a real shift in the world around us. But it does not tell the whole story and it does not tell Europe's story. 2026 will be remembered as the year Europe responded to this new world, by prov- ing another path is possible. From energy to security, we are strengthening our strate- gic independence. Not by re- treating behind tariff walls or cutting ourselves off from the world. Europe is pioneering a different route—resilience at home with openness abroad. Because strength today is not built through isolation, but di- versification. And Europe is not alone. From Canada to India, from Latin America to South-East Asia, countries are search- ing for a model that preserves openness while reducing de- pendence. Europe stands at the centre of this, not as a specta- tor but as a driver. Just 10 days ago, I was in Par- aguay to sign the EU-Mercosur agreement, creating a market of more than 700 million peo- ple and binding Europe and Latin America more closely together at a moment of global realignment. This week I was in New Delhi to conclude the largest trade agreement ever reached by either the Europe- an Union or India. The EU–India deal will bring immediate benefits for Euro- pean businesses and citizens. India already accounts for more than €180 billion in an- nual trade in goods and ser- vices with the EU, supporting close to 800,000 European jobs. Under this agreement, tariffs will be eliminated or reduced on 90% of trade. Eu- ropean exporters will save up to €4 billion a year in duties and EU exports are expected to more than double over time. But this agreement is not just about managing risk in turbu- lent times, it is about seizing opportunity. It is an invest- ment in the long-term part- nership between two of the defining powers of the 21st century. India is the most pop- ulous country in the world, and its fastest-growing large economy. Expanding at over 6% a year, it will drive global growth for decades. We are not just trading more, we are in- vesting in each other's futures. This agreement grants the best conditions India has ever of- fered to any partner. European firms will enjoy conditions un- matched by global competitors so they will be in pole position to help shape, and share in, that growth alongside Indi- an partners. India will gain a trusted, reliable partner to in- vest in its global rise. Europe's farmers will also benefit. Today, Europe ex- ports 10 times more agri-food products to China than it does to India. This deal will help close this gap. Indian tariffs on wine will fall from 150% to as low as 20%. Duties on olive oil will drop from 40% to zero. New opportunities will open for Europe's farmers in a vast and increasingly prosperous consumer market. At the same time, Europe's sensitivities are fully protected. There are no tariff reductions on beef, poul- try or sugar, and all EU health, safety and environmental standards continue to apply to imports from India. Trade agreements often sound technical. But their ef- fect is simple—when the world feels uncertain, trade agree- ments create certainty. That matters. It matters to the wine producer in Burgundy de- ciding whether to invest in a larger harvest, or to the tech entrepreneur in Riga consid- ering whether to hire new staff to adapt an app for a distant market. And it matters to a brewery company in Malta, considering whether to expand the export of its brands to fast growing markets globally. This agreement is about more than economics. Europe is responsible for its own de- fence, just as we are respon- sible for our own prosperity. But in security, as in trade, we know we need to diversify. Today, we are signing the first ever EU-India security and de- fence partnership. A further sign of how much the world has changed, and how new realities can forge new bonds. We are strengthening the links between our defence indus- tries and our armed forces, in- cluding joint naval exercises to tackle piracy and protect vital sea lanes. Faced with a more fractured global order, Europe and India are showing that another way forward is possible—coopera- tion over confrontation. This is not the time for nos- talgia politics. The world will not return to old certainties. Standing still will not restore stability; it will only ensure decline. Europe's answer is to bind itself closer to trusted partners, pursuing diversifica- tion, cooperation and strength, without illusion and without fear. The EU and India agreement will eliminate or reduce tariffs on 90% of trade between both sides (Photo: EC Audiovisual Service/Dati Bendo) Europe's answer is to bind itself closer to trusted partners, pursuing diversification, cooperation and strength, without illusion and without fear