EU-India Trade Deal Leaves Dairy Sector Unchanged Amid High Tariffs

The EU-India Free Trade Agreement, concluded this week, has not resulted in any tariff reductions for dairy products such as cheese, milk powders, and dairy-based nutritional items. The Indian market, considered strategically important by the dairy sector, was treated as highly sensitive during negotiations, resulting in no concessions.

Conor Mulvihill, director of Dairy Industry Ireland, expressed disappointment with the outcome, especially as Irish dairy exports reached unprecedented levels in 2025. However, he remains optimistic about the potential of the Indian market in the long term, highlighting the growing demand for high-quality food and nutrition products.

Agriculture Minister Martin Heydon noted that while the deal positively impacts the agri-food sector, particularly spirits like Irish whiskey, the dairy sector did not see similar benefits. Tariffs on Irish whiskey are expected to decrease from 150% to 40% over time, with similar reductions planned for processed foods, sheepmeat, and beer.

Minister Heydon stated that sensitive EU agricultural sectors received protection under the agreement. Nevertheless, the dairy sector's high tariffs remain a barrier to accessing the Indian market effectively.

The unchanged tariffs and technical requirements continue to pose challenges for the dairy industry, which had hoped for more favorable terms in the agreement.