'So trade-dependent they need..': US trade representative on India-EU deal
What's the story
The United States Trade Representative, Jamieson Greer, has said that India is the biggest beneficiary of the recent Free Trade Agreement (FTA) with the European Union. The agreement, he said, gives India greater access to European markets, labor benefits, and potential mobility opportunities for Indian workers. In an interview with Fox News, Greer emphasized that this deal should be seen in light of changing global trade patterns under US President Donald Trump's focus on domestic production.
Trade shift
EU seeks new markets amid US trade policies
Greer said, "Strategically, it's important to understand that because President Trump has prioritized domestic production and essentially started charging a fee for other countries to access our market, these countries are trying to find other outlets for their overproduction." "And so the EU is turning to India to try to find a place. The EU is so trade-dependent they need other outlets if they can't keep sending all their stuff to the United States," he added.
Market access
FTA enhances India's access to European markets
According to Greer, India will gain greater access to European markets and may profit from improved mobility provisions. He emphasized India's competitive advantage, citing its low-cost labor and expanding manufacturing base. "They get more market access into Europe. It sounds like they have some additional immigration rights. I don't know for sure, but President von der Leyen...has talked about mobility for Indian workers into Europe. So, I think on net, India's going to have a heyday with this," he said.
Economic partnership
FTA unlocks trade potential between India and EU
The FTA between India and the EU is being called a "milestone" deal or the "Mother of All Deals." It aims to create a modern, rules-based trade partnership that addresses global challenges while deepening market integration between the two economies. The combined market of over ₹2,091.6 lakh crore ($24 trillion) offers unprecedented opportunities for both regions' populations. The FTA will potentially double EU goods exports to India by 2032 and eliminate/reduce tariffs on over 96% of EU goods exports.
Oil sanctions
US expects India to wind down Russian oil purchases
Greer also spoke about India's purchase of Russian oil, saying he expects India to gradually reduce these purchases. He said, "They have made a lot of progress on this. I have a great working relationship but....They like the discount that you get from Russian oil, so it's hard for them." He added that the Treasury Department has put into place more significant sanctions, so "we expect India to continue to wind that down. "We're watching it closely," he said.