Trade Representative Jamieson Greer expressed cautious skepticism regarding the recently signed free trade agreement between India and the European Union, suggesting it signals the EU’s commitment to globalization at a time when the U.S. is seeking to address the challenges of global trade.
In an interview with Fox Business on Tuesday, Greer stated that the deal—billed as the “mother of all deals”—appears to favor India, which he claims gains significant market access into Europe. “I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly. They get more market access into Europe,” Greer said. He also noted reports of additional immigration rights for Indian workers, which he said could give India a “heyday” with the agreement, highlighting India’s low-cost labor advantage.
Greer criticized the EU for what he described as “doubling down on globalization,” contrasting this stance with the Biden administration’s efforts to “fix some of the problems of globalization” within the United States. He explained that the EU’s turn toward India reflects its need for alternative export outlets, especially as the U.S. has implemented tariffs and policies that restrict market access.
“Because President Trump prioritized domestic production and essentially started charging a fee for other countries to access the U.S. market, these countries are now seeking other outlets. The EU is turning to India because they need other markets if they can’t keep sending all their goods to the U.S.,” Greer said.
Regarding the ongoing tensions over Russian oil, Greer confirmed that India still pays the 25% tariff on Russian oil imports, in addition to the reciprocal tariffs imposed by the Trump administration. He acknowledged that India has made progress in reducing Russian oil imports but emphasized that significant sanctions remain in place. “They like the discount from Russian oil; it’s close by, so it’s hard for them,” he explained. The U.S. Treasury Department has recently tightened sanctions, and Greer stated that Washington expects India to continue winding down Russian oil purchases, though they are monitoring the situation closely.
The India-EU deal, which aims to create a market of two billion people, is set to bolster trade and defense cooperation. Prime Minister Narendra Modi and EU leaders unveiled a five-year agenda focused on leveraging trade and safeguarding the rules-based international order. The agreement also includes two key pacts—one on security and defense collaboration and another on mobility for Indian talent into Europe.
The comprehensive trade agreement will reduce tariffs on 99% of Indian exports to the EU and cut duties on over 97% of EU exports to India. Sectors such as textiles, leather goods, handicrafts, footwear, and marine products are expected to benefit significantly, while European industries like wine, automobiles, chemicals, and pharmaceuticals are also poised to gain.
As global trade dynamics shift, Greer’s comments underscore the growing divergence between U.S. policies and European strategies, with India emerging as a key player on the world stage.