What's missing in the new EU-India deal trade? Workers' rights

With much of the political limelight focused on Donald Trump’s erratic and damaging trade measures, the European Union and India are now in the final stretch of negotiations on a major trade agreement, with talks intensifying in recent weeks.

Yet a crucial element appears to be missing: a credible and enforceable Trade and Sustainable Development (TSD) chapter.

For trade unions and workers across Europe, TSD chapters are not a technical detail — they are a defining test of whether the EU is committed to the values it claims to uphold. In a world where those values are increasingly under pressure, this test could not be more vital.

A trade deal that lacks strong commitments to labour rights and sustainability would not only undermine workers in both Europe and India — it would also damage Europe’s credibility at a time of growing global trade instability. The EU must not abandon its principles in pursuit of expediency — not now, and certainly not in the current geopolitical climate.

These negotiations are taking place against the backdrop of escalating tensions with the US and a renewed urgency on both sides to conclude the deal by the end of 2025, where the second Trump presidency marks a revival of protectionism, unilateralism, and hostility toward multilateral institutions.

Trump has consistently disregarded international labour standards, environmental cooperation and rules-based trade. If the EU responds by diluting its own standards — or worse, by doing so in a bid to gain geopolitical leverage — it will not fill the vacuum left by US disengagement; it will only deepen it.

Europe cannot win a race to the bottom — and, needless to say, it shouldn’t try. The only viable path forward is to double down on the EU’s distinct role as a global standard-setter for fair, sustainable and rules-based trade.

That starts with ensuring that the EU–India deal fully reflects the values of democracy, social dialogue, and respect for fundamental rights.

India is an increasingly important strategic partner.

It is the world’s most populous democracy and a rapidly growing economy with significant global influence.

But labour rights in India face serious limitations. Millions of workers are in informal employment. Trade unions face systemic constraints. The country has yet to ratify core International Labour Organization (ILO) conventions on freedom of association and collective bargaining.

ILO Conventions set down basic human rights in the labour field that are universally applicable. 

The EU-India FTA should insist that fundamental conventions should be ratified and enforced, including being subject to the dispute settlement mechanisms that apply to other areas covered by the agreement. 

EU-New Zealand deal set a good example - why not India?

The European Trade Union Confederation (ETUC) had hoped that the EU agreement with New Zealand, that includes such provisions, had opened up a new era for sustainable development in European trade agreements, putting labour and environmental considerations on a par with the economic aspects. 

We are concerned that the EU may follow the UK’s toothless deal with India, in which the language on labour rights is merely aspirational.

To negotiate a trade deal that ignores these realities would be short-sighted and deeply damaging. It would send a dangerous signal: that the EU is willing to overlook human and labour rights in exchange for market access.

Plus the UAE

This issue isn’t confined to the India deal alone. Similar concerns arise in the EU’s newly launched trade negotiations with the United Arab Emirates (UAE).

The UAE has a well-documented record of restricting freedom of association, suppressing independent trade unions, and relying heavily on precarious migrant labour under the kafala system.

Entering into a trade agreement without enforceable labour and human rights provisions would not only legitimise these practices — it would demonstrate that economic interests are being prioritised over the EU’s core values. Such a model of globalisation is unacceptable.

Trade and Sustainable Development chapters, when done properly, anchor trade agreements in a framework of accountability. They include binding commitments, oversight mechanisms, and civil society involvement.

Crucially, they send a clear message: trade is not exempt from human rights, environmental obligations, or democratic scrutiny.

If these principles are excluded from the EU’s trade deals, what remains? Agreements that not only fail to reflect Europe’s values — but actively undermine them.

This is why the ETUC insists on the inclusion of strong, enforceable TSD chapters in both the ongoing EU–India negotiations and those with the UAE. It is a test of whether Europe is prepared to stand up for fair globalisation at a time when the rules-based system is under siege.

The EU cannot respond to the erosion of international norms by weakening its own. To do so would be to fall into the very trap laid by authoritarians and economic nationalists.

So, as president Usrula von der Leyen and her commissioners prepare to publish their joint communication on a new Strategic EU-India Agenda, set to be published this week, let’s remember: trade is not just about tariffs or market access. It’s about the kind of world we want to build and live in.

If Europe cannot defend its values in trade policy, then where will it?

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