Trade and mobility in the EU-India Free Trade Agreement: lessons for African countries
In this EUIdeas piece, Amanda Bisong, Tuhina Chatterjee, and Richa Arora examine the recent EU-India Free Trade Agreement’s implications for labour mobility and outline important takeaways for African countries negotiating their own trade agreements.
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Reading time: 8 min.
The EU-India Free Trade Agreement (FTA), concluded on 27 January 2026, is rooted in centuries of shared history, from historic trade routes to complex post-colonial ties. Covering two billion people and nearly a quarter of global GDP, the deal was referred to by European Commission President Ursula Von der Leyen in her speech as the "mother of all deals." In an era of rising protectionism, it serves as a powerful reminder that effective diplomacy is built not just by forging new alliances, but also by cultivating old ones.
The agreement highlights an important issue in global trade: the relationship between trade, labour mobility, and the circulation of skills. For developing countries, incorporating mobility provisions into trade agreements can help expand exports of services while creating pathways for skilled workers to access international markets. Migration governance and mobility frameworks are intertwined with economic cooperation.
This commentary reflects on five key lessons African countries can learn from the EU-India experience when negotiating trade–mobility linkages in their own trade agreements with the EU.
The EU-India FTA: a brief history
Negotiations for the EU-India FTA began in 2007 but stalled in 2013 due to disagreements over labour market access and regulatory standards. Post-COVID-19 disruptions in the supply chain and ongoing geopolitical shifts prompted the EU and India to resume the talks in 2022. The deal was successfully concluded in January 2026 amid renewed geopolitical and economic interests in diversifying supply chains and strengthening strategic partnerships. Both parties recognised the strategic importance of closer economic cooperation, particularly in regard to services, technology, and sustainable supply chains.
A key driver of this success was a ‘whole-of-government' and ‘whole-of-society' approach. In fact, rather than being confined to trade officials, the process was jointly led by the Indian Ministers of Commerce and External Affairs and supported by industry partners, diaspora members, and academic institutions, working alongside EU institutional actors (including the European Commission) and member state governments.
How mobility fits into the agreement
Services are an important part of the EU-India economic relationship. Bilateral trade in services currently accounts for one third of the total trade volume of EU–India trade of €180 billion, reaching nearly €60 billion annually.
Chapter 8 of the EU-India FTA, entitled ‘Trade in Services,’ sets out rules governing cross-border services, professional mobility, and regulatory cooperation. While it builds on the framework of the World Trade Organization’s General Agreement on Trade in Services (GATS), it also introduces provisions typical of recent EU trade agreements. These include stronger commitments on domestic regulation, ensuring transparent and predictable licensing procedures; enhanced transparency requirements, such as the publication of relevant rules and decisions; and clearer provisions on local presence and senior management, limiting requirements for firms to establish locally or appoint resident executives. The services chapter is complemented by several annexes, which govern the mobility of professionals involved in delivering services between the EU and India.
India also secured a commitment to negotiate Social Security Agreements over the next five years, along with a framework supporting student mobility and post-study work opportunities. A Comprehensive Framework for Cooperation on Mobility was likewise negotiated alongside the FTA. However, the effectiveness of these mobility provisions will depend on their implementation — for example, visa approval rates, which are controlled at the national level.
India’s mobility priorities
For India, the narrative on mobility shifted from 'brain drain' to using its large youth population to build human capital. This shift led India to align its labour mobility arrangements with the EU trade talks, positioning India as a major source of skilled talent. In the FTA, India’s key goal was to secure expanded access for its professionals in Europe, especially in sectors where it has strong advantages (such as IT, consulting, engineering, research, and education).
The agreement facilitates temporary movement for business visitors, intra‑corporate transferees, contractual service suppliers, and independent professionals. It grants India access to over 140 EU services subsectors and offers the EU access to 102 service subsectors in India.
These commitments increase predictability and legal certainty for service providers, making it easier to operate across borders, particularly for industries (such as IT, consulting, and engineering) that depend on short-term, project-based professional mobility.
The EU’s cautious approach to mobility
The EU maintains a cautious approach to labour mobility within trade agreements. Similar patterns can be observed in EU trade agreements with Australia, Canada and Japan, where mobility provisions are included in the services chapters but remain narrowly defined. Migration policy within the EU remains largely under the authority of individual member states; consequently, mobility commitments remain subject to national regulations.
In practice, provisions such as intra-corporate transfers or contractual service suppliers are usually handled through existing national visa and immigration systems. While trade agreements may influence immigration policies, they do not override domestic visa policies or labour market regulations.
Historically, the EU has allowed temporary entry for Indian professionals in certain niche sectors, such as chefs, yoga instructors, and other specialised service providers. The EU–India FTA aims to expand this into broader professional categories, reflecting a wider policy shift driven by demographic pressures and labour shortages in Europe. The recently ratified EU Talent Pool, which includes an EU–India pilot on skilled labour mobility, represents a systems-level institutional response to this challenge. The pilot aims to match EU labour shortages with qualified Indian professionals through a coordinated recruitment framework. Its initial focus is on specific sectors, but it has the potential to expand and encompass other professional categories.
Implementation challenges
Even when workers can move freely, administrative barriers such as visa procedures, professional licensing requirements, cultural differences, and skills recognition and integration challenges can be obstacles to such mobility. Moreover, migration policies may tighten further in Europe due to domestic political pressures.
The agreement establishes institutional mechanisms that will be responsible for monitoring implementation. An EU legal gateway office in India has been established to facilitate information sharing and administrative cooperation. The deal also adopts a sector-specific approach to turn commitments into reality: for example, by prioritising ICT mobility in the EU-India corridor. These approaches are complemented by EU-India Innovation hubs and a startup partnership, which aim to foster collaboration between entrepreneurs, support joint innovation projects, and facilitate market access and scaling opportunities for startups in both regions. There have also been exploratory talks on associating India with the Horizon Europe programme, embedding skilled mobility within a wider architecture of research and technology collaboration.
Lessons for African countries
The EU–India experience offers several lessons for African countries seeking to integrate labour mobility into trade agreements with the EU and other actors.
First, mobility should be viewed as a strategic economic tool rather than solely a migration issue. For African countries with large youth populations, targeted temporary professional mobility — particularly in ICT, long-term care, and construction — can ease labour market pressures while strengthening services exports.
Second, African countries can link mobility provisions to broader economic negotiations, including discussions on investment, technological cooperation, and critical raw materials supply chains. Embedding skills development, training, and professional exchanges within these discussions can strengthen bargaining power with larger economic partners. For instance, discussions around critical raw materials or mineral supply chains could include specific provisions on training, skills exchange, or professional mobility.
Third, widening stakeholder participation improves negotiation outcomes. Beyond government negotiators, input from businesses, universities, professional bodies, and diaspora networks can help identify real labour market needs and mobility barriers.
Fourth, regional initiatives such as the African Continental Free Trade Area (AfCFTA) offer an opportunity to develop common standards for professional qualifications and labour mobility within Africa before negotiating similar provisions with external partners. By developing common standards for qualifications, professional certifications, and labour mobility across the continent in specific high-priority sectors, African countries can strengthen their negotiating position in agreements with partner countries in and beyond Europe.
Finally, African countries need to invest in skills recognition frameworks and professional standards. Without these systems, mobility provisions in trade agreements may remain difficult to implement. Developing these systems through national and regional frameworks will ensure that workers are better prepared to benefit from international mobility opportunities.
Conclusion
For African countries, the EU-India Free Trade Agreement highlights both opportunities and challenges. Mobility provisions can create new pathways for skilled professionals, support service exports, and strengthen economic cooperation. Achieving these outcomes will require strategic negotiation, strong domestic institutions, and careful attention to implementation. By integrating mobility into broader trade and development strategies, African countries can transform trade agreements into tools not only for market access but also for skills circulation, workforce mobility, and economic growth.
Tags: EU, India, Africa, Trade, mobility