Business
EU-India On Verge Of Historic Trade Pact: Why The Pact Is Called ‘Mother Of All Deals’, How It Will Transform Global Economy
EU-India Trade Deal: European Commission President Ursula von der Leyen said negotiators had made substantial progress, with only final steps remaining before both sides can seal what she described as a potentially historic agreement.
The European Union (EU) and India are moving closer to finalising a free trade agreement, which could rank among the largest economic pacts ever attempted, hinted European Commission President Ursula von der Leyen at the World Economic Forum in Davos on Tuesday.
Her statements pointed to a deal, which has been years in the making and now appears to be approaching a decisive phase. “There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals, one that would create a market of 2 billion people, accounting for almost a quarter of global GDP,” she said, as describing the EU’s push to diversify trade ties and reduce strategic vulnerabilities.
Why This Agreement Carries Global Weight
The proposed pact carries a scale that few trade agreements can match. A formal economic bridge between one of the world’s fastest-growing major economies and a bloc that is central to global commerce would change supply chains at a moment when countries are re-evaluating how and where they trade.
For Brussels, India has emerged as a key partner in its effort to reduce dependence on China and broaden engagement with economies seen as reliable and long term. For New Delhi, access to the EU’s 27-member market, its second-largest trading partner, would support export growth and strengthen India’s push to climb higher in global manufacturing and services.
Talks Back In Fast Lane
Discussions on an India-EU free trade agreement began in 2007 and then lost momentum for almost a decade. The discussions were revived in 2022, backed by fresh political commitment on both sides. Since then, negotiations have advanced along with the India-EU Trade and Technology Council, a forum established to align cooperation on critical technologies, digital rules and supply-chain resilience.
This parallel engagement has helped narrow regulatory differences and expanded the scope of talks beyond tariffs, giving negotiators room to address newer economic realities.
Why The Deal Is Moving Fast
Geopolitical developments are adding urgency. The EU is moving to diversify away from concentrated dependencies, and India is positioning itself as a central player in redesigned global supply networks.
Trade numbers highlight the momentum. Goods trade reached 124 billion euro in 2023, and services trade, led largely by digital and IT services, is estimated at 60 billion euro. Officials on both sides believe a comprehensive agreement could unlock far greater potential, especially in clean energy, pharmaceuticals, advanced manufacturing and digital services.
Issues Still On The Table
Optimism from Davos has not erased the remaining challenges. European negotiators continue to seek tariff reductions on automobiles, wines and spirits, sectors India has traditionally protected to shield domestic industries.
India is pressing for improved conditions for the movement of skilled professionals, an issue that is sensitive within the EU because visa and mobility policies differ across member states.
Sustainability standards, access to public procurement and regulatory alignment are also under discussion. These issues are politically sensitive; and therefore, von der Leyen stressed that “there is still work to do”.
Her visit to India early next week is expected to be crucial. Diplomats view the trip as a chance to settle the most difficult questions at the political level and provide clear direction to negotiators. The timing is important, coming ahead of a planned India-EU leaders’ meeting later this month, where both sides aim to show tangible progress and possibly point to a breakthrough.
Why The Deal Matters
A final agreement would stand among the EU’s most consequential trade achievements in recent years and strengthen India’s integration into global supply chains.
It would strengthen flows of goods, services and investment, offer more predictable market access, expand cooperation on technology and standards and send a strong signal of strategic alignment at a time when global trade is being changed.
A combined market representing nearly a quarter of global GDP would immediately place the EU-India pact among the most influential trade agreements in the world, with ripple effects far beyond Europe and South Asia.
Business
Ticketmaster parent Live Nation reaches settlement with Department of Justice over antitrust concerns
Signs are seen at the Live Nation NYC headquarters on May 23, 2024 in New York City.
Michael M. Santiago | Getty Images
Live Nation Entertainment has reached a settlement with the Department of Justice over antitrust concerns surrounding its Ticketmaster platform, a senior DOJ official said Monday.
The settlement would see Ticketmaster unwind some of its exclusivity agreements with musical artists and open up the ticketing industry to greater competition. It still needs approval by more than 20 states that had filed suit and by the court.
As part of the settlement, Ticketmaster will offer a standalone third-party ticketing system for other companies like SeatGeek to use its technology. Live Nation has also agreed to divest at least 13 of its amphitheaters and will no longer be able to require artists to use other Live Nation products tied to its venues. It has also agreed to pay roughly $280 million in civil penalties.
Shares of Live Nation rose 5% in morning trading. Live Nation and Ticketmaster did not immediately respond to requests for comment.
Ticketmaster has long faced criticism that its dominance in the live events and ticketing space pushes up prices for consumers. The company has come under heightened scrutiny in recent years from fans who argue that it’s become harder and pricier to snag coveted event tickets.
In 2022, the backlash boiled over when the rollout of tickets for Taylor Swift’s Eras Tour was mishandled, leading to a probe of the company. And in 2024, the DOJ — along with more than two dozen states — sued to break up Live Nation and Ticketmaster, which merged in 2010.
In September, Live Nation was separately sued by the Federal Trade Commission over what the agency called “illegal” ticket resale tactics. The FTC said Ticketmaster controls roughly 80% of major concert venues’ ticketing.
In a Monday statement, New York Attorney General Letitia James said her office would continue to fight against Live Nation’s alleged monopoly even after its agreement with the DOJ.
“The settlement recently announced with the U.S. Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it,” said James, who is joined by the attorneys general of more than 20 other states.
The conflict in the Middle East could raise the cost of petrol, household energy bills and even food.
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Oil prices surged past $115 (£86.47) a barrel on Monday as fuel shortages sparked rationing and violence in South Asia, as the Iran war continues to choke the world’s most critical energy route.
Brent crude rose to $115.31 (£86.47) a barrel, up 24 per cent from Friday’s close and the highest since 2022, as the US–Israeli war with Iran entered its second week. The Strait of Hormuz remained effectively closed to most operators.
West Texas Intermediate crude hit $116.33 (£87.41), up 28 per cent. Brent has not traded at current levels since Russia invaded Ukraine in 2022.
The surge in energy prices is causing rationing and closure of petrol stations in import-dependent South Asia.
In Sialkot, Pakistan, a man opened fire at a petrol station on Saturday after workers refused to fill jerry cans, killing one worker and critically injuring two others. Separately, a man was killed in Karachi in another fuel queue altercation.
Pakistan raised petrol prices by PKR55 (£0.15) per litre on Friday, the largest ever single increase, to PKR321 per litre, after weeks of warnings that its exposure to Hormuz-linked supply was among the highest of any emerging market.
In Bangladesh, authorities on Monday brought forward university Eid holidays as an emergency measure to cut electricity use and ease fuel pressure after Qatar suspended Liquefied natural gas (LNG) deliveries.
Officials said university campuses consume large amounts of electricity for residential halls, classrooms, laboratories and air conditioning, and the early closure would help ease pressure on the country’s strained power system.
Five of the country’s six fertiliser factories have also closed.
Bangladesh already imposed daily fuel limits last week – motorcyclists are capped at two litres, private cars at 10 – after panic buying emptied stations across the country.
“About 95 per cent of our fuel must be imported,” Bangladesh Petroleum Corporation said, urging consumers not to hoard.
Meanwhile, bigger economies are also affected. Japan said on Sunday it had instructed a national oil reserve storage site to prepare for a possible release of crude, the first such directive since 2022.
Japan holds 254 days of emergency reserves, one of the highest, but sources 95 per cent of its crude from the Middle East, with roughly 70 per cent shipped through the Strait.
India, which imports more than 88 per cent of its oil, sought to calm concerns. Oil minister Hardeep Puri said the country held “sufficient stocks” and directed all LPG (liquefied petroleum gas) refineries, public and private, to increase production.
Analysts are now warning that oil prices could exceed $150 a barrel – a level that could be catastrophic for the global economy.
“Oil prices have now gathered all the ingredients for a perfect storm,” Muyu Xu, senior oil analyst at Kpler, told Reuters. “If the disruption in the Strait of Hormuz persists for another one to two weeks, we could see prices move toward $130–150 a barrel.”
BMI, a unit of Fitch Solutions, said Pakistan and India are the most vulnerable major emerging markets, citing their energy import dependence and high exposure to Hormuz. Egypt and Turkey, it said, face the greatest risk outside the Gulf because of fragile external positions and large energy subsidies.
The shortages come as Iraq, Kuwait and the UAE cut oil production as storage tanks fill due to the reduced ability to export through the Strait.
Iran‘s parliament speaker, Mohammad Bagher Ghalibaf, warned that the war’s impact on the oil industry “would spiral” after Israeli strikes on oil depots in Tehran and a petroleum transfer terminal killed four people overnight.
Roughly 15 million barrels of crude oil, about 20 per cent of global supply, typically pass through the Strait each day, according to Rystad Energy.
The energy minister of Qatar, one of the world’s largest LNG producers, warned that it expects all Gulf energy producers to shut down exports within weeks if the Iran conflict continues.
“Everybody that has not called for force majeure we expect will do so in the next few days if this continues,” Saad al-Kaabi told FT on Friday. “All exporters in the Gulf region will have to call force majeure.”
US energy secretary Chris Wright told CNN on Sunday that gas prices would be back under $3 a gallon “before too long”, describing the spike as “a weeks, not a months thing”.
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