US Criticizes EU Over India-EU Trade Pact
New York- The United States has expressed disappointment in the European Union following the Free Trade Agreement (FTA) between India and the EU. The US Treasury Secretary, Scott Bessent, criticized the Europeans for not imposing tariffs on India for purchasing Russian oil due to the trade deal.
Bessent stated in an interview with CNBC’s ‘Squawk on the Street’ that the Europeans’ decision to prioritize trade over supporting US sanctions on India for buying Russian oil was disappointing, especially considering the ongoing conflict between Ukraine and Russia.
The US had imposed a 25% tariff on India for purchasing Russian oil, but the EU chose not to join in, opting instead to pursue the trade deal with India. Bessent highlighted that the Europeans were indirectly funding the war by buying refined products from sanctioned Russian oil.
He emphasized that European trade interests seemed to take precedence over resolving the conflict in Ukraine, raising concerns about the EU’s priorities in the face of geopolitical tensions.
Bessent also pointed out that the trade deal between India and the EU had drawn attention from the Trump administration, with US Trade Representative Jamieson Greer acknowledging India’s advantageous position in the agreement.
Greer noted that India stood to benefit significantly from increased market access to Europe, including potential immigration rights for Indian workers. The EU’s focus on globalisation and trade partnerships with India was seen as a strategic move amid changing dynamics in global trade.
The India-EU free trade agreement, described as the “mother of all deals,” aims to create a market of two billion people, enhancing trade relations and fostering a rules-based world order. The agreement includes provisions for security and defence collaboration, as well as mobility of Indian talents to Europe.
Officials anticipate that the FTA will lead to a substantial reduction in tariffs on Indian exports to the EU and vice versa, benefiting sectors such as textiles, apparel, automotive, and pharmaceuticals. The agreement marks a significant milestone in strengthening economic ties between India and the EU.
