- India and the EU announced a historic trade deal after 20 years of negotiations
- US Treasury Secretary criticised the deal for indirectly funding the Russia-Ukraine war
- Canada praised the deal as a response to tariff-based economic coercion by global powers
The European Union (EU) and India announced that they had struck a "historic" trade deal on Tuesday. The pact is set to see exports double to New Delhi. Although the deal was 20 years in the making, the return of US President Donald Trump had accelerated the need to seal the deal.
Speaking at a joint news conference in New Delhi with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Prime Minister Narendra Modi said the partnership with the EU "will strengthen stability in the international system" at a time of "turmoil in the global order."
The India-EU trade pact will represent a quarter of the world's economy and one-third of global trade, bringing opportunities for the 1.4 billion people of India and the millions of people in Europe. The deal will be implemented within a year after legal vetting.
Timing Of The Trade Deal
The agreement comes amid Trump's 50 per cent tariffs on goods from India and after a delay in the US-India trade deal and when Europe is seeking to reduce its dependence on the US and China and deepen its diplomatic and economic ties to other regions.
An audio recording of Senator Ted Cruz surfaced where he openly criticised Vice President JD Vance and 'sometimes' even Trump for being resistant to reaching a deal with India on trade.
Team Trump On India-EU Trade Pact
Although Trump is yet to react to the India-EU "mother of all deals", US Treasury Secretary Scott Bessent has already slammed the deal for indirectly funding the Russia-Ukraine war.
"We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India," Bessent told ABC News.
The United States has warned that Europe is financing a "war" against itself by signing the "mother of all trade deals" with India. Bessent said Europe may have significantly phased out direct energy ties with Moscow, but they are indirectly funding the Russia-Ukraine war by purchasing Russian oil products refined in India, even as Washington targeted New Delhi with tariffs.
Bessent framed the issue as an imbalance in sacrifice between the United States and its allies. He argued that while Washington has pushed to destabilise Moscow's energy trade, Europe continues to benefit economically from loopholes in the global oil trade.
Canada On India-EU Trade Pact
Canada's Minister of Energy and Natural Resources, Tim Hodgson, in a veiled attack on Trump, said India's free trade agreement with the European Union is a "perfect" answer to global hegemons that use tariffs and economic integration as tools of coercion.
The long-awaited free trade agreement is expected to significantly expand the overall trajectory of two-way engagement, as it will open up new opportunities for cooperation in diverse areas.
