India-EU Mother of All Deals Sparks US Fury: Trump Official Slams Europe as Cheater

A seismic shift in global trade is underway as India and the European Union (EU) prepare to formalize a landmark Free Trade Agreement (FTA), dubbed the 'Mother of All Deals'. After 18 years of grueling negotiations, the deal is set to be finalized during a high-profile summit at Hyderabad House in New Delhi, while prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa to seal this historic pact.

The 18-Year Journey to a Historic Summit

The roots of this trade agreement trace back to 2007. For nearly two decades, the negotiations faced numerous hurdles, ranging from tariff disagreements to intellectual property concerns. However, the current geopolitical climate has pushed both regions closer. The summit, commencing at 11:30 AM today, marks the culmination of these efforts. A joint press statement scheduled for 1:15 PM is expected to outline the strategic depth of this partnership, which aims to redefine economic ties between the world's largest democracy and the 27-nation bloc.

US Outrage and the 'Cheater' Label

The announcement has not gone down well in Washington. Scott Bessent, the Treasury Secretary-designate for the incoming Trump administration, has launched a scathing attack on the European Union. In a recent interview, Bessent labeled Europe as 'cheaters', accusing them of. Undermining US efforts to isolate Russia and manage global trade through tariffs. He argued that while the US imposed a 25% tariff on Indian goods in response to Russian oil purchases, Europe chose to sign a massive trade deal instead. According to Bessent, Europe is effectively 'financing a war against itself' by prioritizing economic gains over strategic alignment with the US.

Economic Impact: A $50 Billion Boost

Commerce Minister Piyush Goyal has been a vocal proponent of this deal, highlighting its potential to transform the Indian economy. Currently, bilateral trade between India and the EU stands at approximately $137 billion. Experts predict that the FTA will trigger an additional $50 billion in trade volume. India’s exports to the EU, which currently total $76 billion, are expected to skyrocket as tariffs on key sectors are slashed. The EU remains one of India's largest trading partners, accounting for nearly 17% of its total exports.

Strategic Benefits for Indian Industries

The 'Mother of All Deals' is a game-changer for several Indian sectors, while textiles, pharmaceuticals, steel, and machinery are poised for significant growth. By reducing the tariff burden, Indian products will become more competitive in the European market, while this is particularly crucial as India seeks to diversify its export destinations to mitigate the impact of potential US tariffs under the Trump administration. Also, the deal will facilitate the export of petroleum products and high-end machinery, providing a much-needed boost to the manufacturing sector.

What Europe Gains from India

The agreement is equally beneficial for the European Union. European manufacturers of automobiles, machinery, and luxury goods like wine and spirits have long eyed the massive Indian middle class. The FTA will lower import duties on European cars and auto components, making them more affordable for Indian consumers. Beyond economics, the deal strengthens the EU's strategic presence in the Indo-Pacific region,. Offering a reliable alternative to the increasingly volatile trade environment dominated by US-China tensions.

India's Rising Stature in Global Diplomacy

This trade pact is a testament to India's growing influence on the global stage. By successfully navigating the complex demands of the EU while managing its relationship with the US, India has demonstrated sophisticated diplomatic maneuvering. The deal aligns perfectly with the 'Make in India' initiative, positioning the country as a global manufacturing hub, while despite the harsh rhetoric from the US, India’s decision to move forward with the EU highlights its commitment to a multi-polar world where national interests dictate economic policy.