The United States’ top trade official has stated that the large trade agreement between India and the European Union, which was finalized on an unprecedented scale, seems to favor New Delhi by providing greater access to the European market.
European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi have announced a massive trade agreement between India and the EU that will create a free trade zone with two billion people. While in New Delhi on Tuesday, von der Leyen wrote on X that the two parties were “making history today.”
US Trade Representative Jamieson Greer said that India will “come out on top” of the deal and that New Delhi would “have a heyday” after it was put into effect. “So far, I have examined some of the deal’s specifics. To be honest, I believe India wins this. Greer added, “They get more market access into Europe.
“It sounds like they have some additional immigration rights,” the US official added, referring to specifics of the planned accord. I’m not positive, but EU President von der Leyen has discussed Indian workers’ mobility into Europe. Therefore, I believe that India will have a heyday with this.
Known as the “mother of all deals,” India and the EU signed a historic free trade agreement on Tuesday that will create a combined market of almost two billion people and unveil a revolutionary five-year agenda that will use trade and defense cooperation to support the rules-based global order. Almost 25% of the world’s GDP will come from the agreement, which will remove tariffs on 99% of Indian exports to the EU and reduce taxes on more than 97% of EU exports to India.
However, the US trade director seemed to minimize the importance of the development, claiming that as the US prioritizes local manufacturing and enacts more restrictive trade policies, the European Union has been forced to look for alternate markets due to the changing global trade climate.
Strategically, it’s critical to recognize that these nations are looking for alternative markets for their excess output since President Trump has prioritized home production and effectively begun charging a fee for other nations to join our market. The “EU is so trade dependent,” Greer added, “and so the EU is turning to India to try to find a place.”
He claims that since the European Union seems to be “doubling down on globalization,” the agreement will increase India’s access to European markets thanks to its cheap labor. The mother of all deals is now complete. We have established a two-billion-person free trade zone that will benefit all parties,” she continued.
Prior to a meeting with von der Leyen and European Council President Antonio Costa, Modi announced that the historic deal had been struck after over two decades of intermittent negotiations, praising its advantages. He declared, “This deal will bring many opportunities for the 1.4 billion people in India and many millions of people in the EU.”
According to Modi, the agreement will encompass roughly 25% of the world’s gross domestic product (GDP), and India will benefit in industries like leather goods, textiles, and jewellery and gems. It will make it possible for India, the most populous country in the world, to allow free trade with its largest trading partner, the 27-nation EU, on its vast, protected market.
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While New Delhi sees Europe as a significant potential source of technology and investment, the EU, which sees India as a significant market for the future, stated that European businesses will profit from the “first mover advantage” in the Indian market.
