EU and India Unveil Historic Trade Deal Amid Shift Away from US Dominance
In a significant move, the European Union (EU) and India have signed a massive free trade agreement, marking a new era in their strategic partnership. The deal promises to bring together over 2 billion consumers and a quarter of the world's GDP, setting the stage for a post-US world order.
The EU-India comprehensive strategic agenda, unveiled on Tuesday, encompasses areas such as defence and security, multilateralism, mobility, and cooperation in various sectors. The agreement aims to facilitate the export of manufacturing and services from India, while also opening up European markets to Indian goods, including cars and wine. Middle-class Indian consumers are expected to benefit from lower prices for these products.
So, what prompted this sudden acceleration of talks? The answer lies in Donald Trump's America. The EU had long struggled with US protectionism, punitive tariffs, and erosion of multilateral institutions under the erstwhile president. The recent reviving of discussions over territorial sovereignty in Greenland, coupled with Trump's imposing tariffs on its neighbours, Canada and Mexico, led to a growing sense of Europe being "home alone."
This perception has prompted EU leaders to re-evaluate their strategic priorities. With the US increasingly seen as unreliable and even threatening, Brussels is now focusing on "de-risking" and "decoupling." This shift in focus extends beyond supply chains to encompass strategic capacity to act against coercion.
The EU-India partnership represents a significant convergence of interests. India's commitment to multilateral institutions and cooperation in areas such as security and defence are mirrored by the EU. As the US withdraws from the Indo-Pacific region, this partnership is poised to fill the vacuum.
Other nations are also forging new alliances, driven by a growing desire for multipolarity and strategic autonomy. The recent conclusion of a trade deal with South American Mercosur bloc, coupled with agreements with the UK and New Zealand, underscores this trend.
A sense of optimism has returned to India, as EU leaders were welcomed as guests of honour at Republic Day celebrations in New Delhi. The images projected by these events are worlds removed from the European mood in recent months, which has been clouded by frictions in transatlantic relations.
As the world moves on, America's unipolar dominance is increasingly seen as a relic of the past. A new era of multipolarity and strategic autonomy is taking shape, driven by nations like India and the EU. The EU-India trade deal marks an exciting chapter in this evolution, one that promises to reshape global geopolitics for years to come.
In a significant move, the European Union (EU) and India have signed a massive free trade agreement, marking a new era in their strategic partnership. The deal promises to bring together over 2 billion consumers and a quarter of the world's GDP, setting the stage for a post-US world order.
The EU-India comprehensive strategic agenda, unveiled on Tuesday, encompasses areas such as defence and security, multilateralism, mobility, and cooperation in various sectors. The agreement aims to facilitate the export of manufacturing and services from India, while also opening up European markets to Indian goods, including cars and wine. Middle-class Indian consumers are expected to benefit from lower prices for these products.
So, what prompted this sudden acceleration of talks? The answer lies in Donald Trump's America. The EU had long struggled with US protectionism, punitive tariffs, and erosion of multilateral institutions under the erstwhile president. The recent reviving of discussions over territorial sovereignty in Greenland, coupled with Trump's imposing tariffs on its neighbours, Canada and Mexico, led to a growing sense of Europe being "home alone."
This perception has prompted EU leaders to re-evaluate their strategic priorities. With the US increasingly seen as unreliable and even threatening, Brussels is now focusing on "de-risking" and "decoupling." This shift in focus extends beyond supply chains to encompass strategic capacity to act against coercion.
The EU-India partnership represents a significant convergence of interests. India's commitment to multilateral institutions and cooperation in areas such as security and defence are mirrored by the EU. As the US withdraws from the Indo-Pacific region, this partnership is poised to fill the vacuum.
Other nations are also forging new alliances, driven by a growing desire for multipolarity and strategic autonomy. The recent conclusion of a trade deal with South American Mercosur bloc, coupled with agreements with the UK and New Zealand, underscores this trend.
A sense of optimism has returned to India, as EU leaders were welcomed as guests of honour at Republic Day celebrations in New Delhi. The images projected by these events are worlds removed from the European mood in recent months, which has been clouded by frictions in transatlantic relations.
As the world moves on, America's unipolar dominance is increasingly seen as a relic of the past. A new era of multipolarity and strategic autonomy is taking shape, driven by nations like India and the EU. The EU-India trade deal marks an exciting chapter in this evolution, one that promises to reshape global geopolitics for years to come.