The landmark free trade agreement between India and the European Union has not only reshaped global trade equations but has also found an enthusiastic supporter in one of India’s closest partners in the Islamic world—the United Arab Emirates (UAE). Welcoming the India–EU deal, the UAE has expressed hope that it too will soon reach a similar milestone with the European bloc.
UAE Applauds the “Mother of All Deals”
Reacting positively to the agreement, the UAE described the India–EU trade pact as a strong model of economic partnership that promotes sustainable growth and shared prosperity. Abu Dhabi said the deal reflects how modern trade agreements can go beyond tariffs and become frameworks for long-term cooperation.
The UAE added that negotiations between the UAE and the European Union are progressing in the right direction, and it is optimistic that they will culminate in a comprehensive trade agreement similar to the one signed by India and the EU.
Focus on Bilateral and Global Trade Growth
The UAE also highlighted the importance of its Comprehensive Economic Partnership Agreement (CEPA) with India, calling it an advanced example of economic integration, mutual benefit, and sustainable development. It reiterated its commitment to free trade, emphasizing that open markets at both bilateral and global levels are essential for stability and prosperity.
Abu Dhabi underlined that it will continue to support strategic economic partnerships and strengthen cooperation with key global economies, positioning itself as a hub for international trade and investment.
What India Gains from the India–EU Deal
The India–EU trade agreement is expected to deliver wide-ranging benefits for New Delhi. A mobility pact under the deal will open new opportunities for Indian students, professionals, and researchers in Europe. Increased employment abroad could also boost remittances from non-resident Indians (NRIs).
More than 99% of Indian exports are expected to receive preferential access, enhancing competitiveness. The deal is also likely to improve production standards and service quality in India, while increased competition from European products could benefit Indian consumers. MSMEs and startups are expected to gain new avenues for global collaboration.
Benefits for Europe
For the European Union, the agreement will significantly reduce tariffs on over 90% of goods exported to India, resulting in estimated savings of nearly €4 billion. European companies will gain easier access to the fast-growing Indian market, particularly for high-technology and advanced manufacturing products.
The U.S. Reaction
The deal has not gone unnoticed in Washington. U.S. Treasury Secretary Scott Bessent criticized the agreement, suggesting that Europe prioritized trade interests over its stated concerns for Ukraine. He remarked that the deal explains why the EU did not align with Washington’s push for higher tariffs on India last year, arguing that Europe chose commerce over geopolitics.
A Signal to the World
The warm response from the UAE highlights the broader global impact of the India–EU trade agreement. For Abu Dhabi, the deal is not just a diplomatic success for India, but also a source of inspiration—reinforcing confidence that its own talks with the EU could soon reach the same destination.
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