New Delhi: The European Union (EU) and India announced that they had struck a historic trade deal on Tuesday. European Commission President Ursula von der Leyen and European Council President Antonio Costa, Prime Minister Narendra Modi at a joint press conference said that partnership with the EU will strengthen stability in the international system at a time of turmoil in the global order.

The pact is set to see exports double to New Delhi. Although the deal was 20 years in the making, the return of US President Donald Trump had accelerated the need to seal the deal.

The India-EU trade pact will represent a quarter of the world’s economy and one-third of global trade. The India-EU trade pact will bring opportunities for the 1.4 billion people of India and the millions of people in Europe. The deal will be implemented within a year after legal vetting.

The agreement comes amid Trump’s 50% tariffs on goods from India and after a delay in the US-India trade deal and when Europe is seeking to reduce its dependence on the US and China and deepen its diplomatic and economic ties to other regions.

Canadian Minister of Energy and Natural Resources, Tim Hodgson said that India’s free trade agreement with the European Union is a perfect answer to global hegemons that use tariffs and economic integration as tools of coercion.

The long-awaited free trade agreement is expected to significantly expand the overall trajectory of two-way engagement, as it will open up new opportunities for cooperation in diverse areas.