Wolfgang Lehmacher gives his thoughts on the mother of all FTAs, arguing it could usher in a quantum leap for shipping leaders.
The new India-EU trade deal, called the ‘Mother of all FTAs’, is cutting tariffs, but more critically, it might change how shipping companies operate worldwide. The agreement brings in strict rules on environmental standards, digital tracking, and sustainability, forcing maritime leaders to rethink how they run their businesses. The most successful actors will use advanced technology to meet the new rules and gain an edge, making their operations more efficient, resilient, and trusted.
This deal is different from past trade agreements because it links business, the environment, and digital progress in a way that will reshape the sector. Shipping companies that follow the new sustainability and digital reporting rules will be better positioned to meet the demands of customers, investors, and regulators in an uncertain world. Using advanced technology for fleet management, route planning, and compliance will help companies cut emissions, reduce costs, and become more agile.
It is important for companies to make environmental standards a core part of their business. This goes far beyond regulatory compliance, as the agreement aims to build trust and improve their reputation. Digital tracking will help companies demonstrate they are meeting new requirements and give customers and regulators confidence. Working closely with technology experts, sustainability consultants, and regulators will help companies handle the complex new rules and find new ways to grow.
Creating a culture of innovation within the company, by investing in its people and trying new ways of working, will be key to long-term success. The mix of the India-EU trade deal and advanced technology is creating a new era in which sustainability, digitalisation, and profitability go hand in hand. The best shipping leaders will use technology to turn environmental action into an advantage. By using these tools for fleet management, route planning, and compliance, leading actors are cutting emissions, saving money, and building the resilience and trust needed in today’s world. This might be the big change that will shape the future of shipping.
The deal has its challenges. According to a report prepared by former Indian Trade Service officer Ajay Srivastava, the EU’s Carbon Border Adjustment Mechanism (CBAM) and strict digital reporting requirements could force Indian exporters to lower prices by 15-22% to remain competitive, acting as a non-tariff barrier. High registration costs for chemicals and medical devices, and strict sanitary and phytosanitary standards, have been flagged as challenges for Indian agri and marine products, resulting in rejected shipments due to pesticide traces or compliance issues. Sensitive agricultural sectors, like dairy, sugar, rice, and ethanol, are largely excluded from the deal, limiting its benefits.
Despite these challenges, the India-EU FTA offers significant opportunities for shipping companies that can adapt and innovate. The most successful actors are those who use the regulatory standards to build resilience, agility, and trust. The deal is projected to double EU exports to India by 2032, driving sustained growth in containerised and breakbulk cargo, with Indian ports like Jawaharlal Nehru Port (JNPT), Mundra, and Pipavav well-positioned to capture increased Europe-bound volumes. European hubs like Rotterdam, Antwerp, Hamburg, Piraeus, and Valencia will benefit on the inbound side, reshaping trade corridors.
Government and industry are stepping up to support affected sectors. Initiatives such as innovation hubs and policy interventions are helping companies navigate the transition. As European Commission President Ursula von der Leyen stated, “We have created a free trade zone of two billion people, with both sides set to benefit.” This could be a quantum leap that will define the future of maritime leadership in 2026 and beyond.
