We study the {edge-coloring} problem in the message-passing model of distributed computing. This is one of the most fundamental and well-studied problems in this area. Currently, the best-known deterministic algorithms for (2Delta -1)-edge-coloring requires O(Delta) + log-star n time \cite{PR01}, where Delta is the maximum degree of the input graph. Also, recent results of \cite{BE10} for vertex-coloring imply that one can get an O(Delta)-edge-coloring in O(Delta^{epsilon} \cdot \log n) time, and an O(Delta^{1 + epsilon})-edge-coloring in O(log Delta log n) time, for an arbitrarily small constant epsilon > 0. In this paper we devise a drastically faster deterministic edge-coloring algorithm. Specifically, our algorithm computes an O(Delta)-edge-coloring in O(Delta^{epsilon}) + log-star n time, and an O(Delta^{1 + epsilon})-edge-coloring in O(log Delta) + log-star n time. This result improves the previous state-of-the-art {exponentially} in a wide range of Delta, specifically, for 2^{Omega(\log-star n)} \leq Delta \leq polylog(n). In addition, for small values of Delta our deterministic algorithm outperforms all the existing {randomized} algorithms for this problem. On our way to these results we study the {vertex-coloring} problem on the family of graphs with bounded {neighborhood independence}. This is a large family, which strictly includes line graphs of r-hypergraphs for any r = O(1), and graphs of bounded growth. We devise a very fast deterministic algorithm for vertex-coloring graphs with bounded neighborhood independence. This algorithm directly gives rise to our edge-coloring algorithms, which apply to {general} graphs. Our main technical contribution is a subroutine that computes an O(Delta/p)-defective p-vertex coloring of graphs with bounded neighborhood independence in O(p^2) + \log-star n time, for a parameter p, 1 \leq p \leq Delta.