As India and the European Union announced a free trade agreement after nearly two decades of negotiations, the Trump administration in the United States sees the deal as largely favouring New Delhi by providing wider access to the European market. According to US Trade Representative Jamieson Greer, India is “going to have a heyday” once the agreement is implemented.
“I think India comes out on top on this. Frankly, they have more market access into Europe,” Greer said during an interview with Fox Business on Tuesday.
Discussing the terms of the proposed agreement, he added, “It sounds like they [India] have some additional immigration rights. President von der Leyen of the EU has talked about mobility for Indian workers into Europe. On net, India is going to have a heyday with this. They have low-cost labour.”
Greer also appeared to criticise the EU, stating, “It looks like the EU is doubling down on globalisation when we’re trying to fix some of the problems with globalisation here in the US.”
On India-US Trade Deal
Greer noted that India still has work to do to address US concerns regarding its purchases of Russian oil and to secure tariff relief. While New Delhi has “made a lot of progress” in reducing its imports of Russian crude, he acknowledged that completely weaning off these supplies is challenging due to the discounted prices.
“I am in frequent contact with my counterpart in India. I have a great working relationship with him, but they still have a ways to go on this point,” he said, suggesting that an agreement to lower US tariffs on Indian goods remains some distance away.
US and Indian officials have been negotiating for months over an arrangement to reduce the 50% tariff imposed by Trump last year, citing India’s oil purchases as contributing to Russia’s war in Ukraine. Discounted Russian crude continues to account for a significant portion of Indian imports, a trend expected to persist into 2026.
India-EU Trade Deal
The India-EU free trade agreement, finalised on Tuesday, could affect nearly 2 billion people after nearly 20 years of negotiations. European Commission President Ursula von der Leyen described it as the “mother of all deals.”
The agreement will provide free trade on nearly all goods between India and the EU’s 27 member states, including textiles, medicines, and automobiles, while reducing high import duties on European wine and cars. The deal is expected to take several months to come into effect.
Prime Minister Narendra Modi, speaking virtually at an energy conference, called it a “major opportunity for the people of India and Europe,” noting that it represents 25% of global GDP and one-third of world trade.
India and the EU also agreed on a framework for deeper defence and security cooperation, along with a separate pact aimed at easing mobility for skilled workers and students, signalling that the partnership extends beyond trade.
The negotiations gained momentum after US President Donald Trump’s aggressive trade tactics, which included threatening European allies with punitive tariffs. (Agencies)
