India and EU Prepare to Implement Their Free Trade Agreement: Customs, Trade Facilitation and the Diamond Trade
India's Commerce Secretary visited Brussels (the headquarters of the European Union) to prepare for putting the India-EU Free Trade Agreement (FTA) into action. The agreement is scheduled to be signed in December 2026.
India and the EU had announced the end of negotiations on 27 January 2026, at the 16th India-EU Summit in New Delhi. Since then, the legal text has been checked line by line (called "legal scrubbing") before signing.
In Brussels, the Commerce Secretary met senior European Commission officials in charge of trade, international partnerships, and taxation and customs.
The customs talks focused on customs cooperation and trade facilitation (making it faster and cheaper for goods to cross borders). Both sides stressed customs procedures that are efficient, transparent and digital.
The Commerce Secretary also met diamond industry representatives linked to Antwerp in Belgium, a major world diamond centre. They discussed certification, traceability (tracking a diamond's journey from mine to shop) and responsible sourcing.
The FTA is expected to give duty-free access in the EU to Indian labour-intensive goods such as textiles, leather, and gems and jewellery.
Free Trade Agreements: Concept and WTO Framework
A Free Trade Agreement (FTA) is a deal between two or more countries to remove or sharply cut import taxes (tariffs) on most of the goods they trade with each other. Each member still keeps its own tariffs for countries outside the deal. Modern FTAs also cover services, investment, government buying and rules of origin. World Trade Organization (WTO) rules allow FTAs as an exception to the normal rule of treating all members equally, as long as the deal covers "substantially all the trade" between the partners.
The India-EU FTA is the largest trade deal India has negotiated. The Brussels talks were about making sure the deal works on the ground once it is signed in December, especially at the customs border, where tariff benefits are actually given or denied.
Trade Facilitation Agreement (TFA): Making Goods Cross Borders Faster
The Trade Facilitation Agreement (TFA) is a World Trade Organization (WTO) agreement that makes it faster, cheaper and simpler for goods to cross borders. It does not cut tariffs (import taxes). Instead, it cuts the paperwork, delays and confusion at customs. It came into force on 22 February 2017 and binds all WTO members who have accepted it.
The Brussels talks on customs cooperation and trade facilitation are about the same goals the TFA sets: quick, transparent and digital customs. Without smooth customs, the tariff cuts in the India-EU FTA would not fully reach exporters.
The Kimberley Process Certification Scheme (KPCS)
The Kimberley Process Certification Scheme (KPCS) is an international system that stops "conflict diamonds" from entering the legal diamond trade. Conflict diamonds, also called "blood diamonds", are rough diamonds that rebel groups sell to buy weapons and fight governments. Under the scheme, every shipment of rough diamonds crossing a border must travel with a government certificate showing that it is conflict-free. Member countries trade rough diamonds only with other members.
The Commerce Secretary's meeting with Antwerp's diamond industry dealt with certification, traceability and responsible sourcing, the same issues the Kimberley Process handles. As KP chair in 2026 and the world's main diamond-cutting hub, India wants trusted diamond trade rules so that the duty-free access promised under the India-EU FTA actually helps its gems and jewellery exporters.
- India-EU FTA negotiations concluded: 27 January 2026, at the 16th India-EU Summit, New Delhi
- Planned signing: December 2026; EU side needs European Parliament consent, India needs Union Cabinet approval
- India's market opening: about 92% of tariff lines, with phased cuts over 5, 7 or 10 years
- WTO Trade Facilitation Agreement in force since 22 February 2017; India ratified in April 2016
- Kimberley Process: in effect from 1 January 2003; 60 participants, 86 countries
- India is KP chair for 2026 (third time, after 2008 and 2019)
- Antwerp (Belgium), Mumbai and Surat are major global diamond centres