India's Trade Victory
The US Trade Representative, Jamieson Greer, has declared India as a significant beneficiary of its trade agreement with the European Union. Greer emphasized
that India had secured considerable advantages in both market access and immigration possibilities. He made these remarks in a Fox Business interview, where he discussed the implications of the newly finalized India-EU free trade agreement. This positive assessment comes after nearly two decades of fluctuating negotiations between India and the EU. Greer's statements underscored the US's perspective on the agreement and India's position within the global trade landscape. The India-EU deal was described as the "mother of all trade deals."
Tariffs Remain in Place
Even with positive sentiments regarding the India-EU trade agreement, the US still maintains additional tariffs on Indian imports. These punitive tariffs add an extra 25% duty, bringing the total tariffs on Indian goods to 50%. This was a point Greer confirmed during the Fox Business interview. The US is keeping a close watch on India's purchases of Russian crude oil. Greer acknowledged the challenges India faces in completely severing its energy ties with Russia, recognizing the advantages of discounted crude. This stance demonstrates the complexities of international trade and the varied interests at play.
Oil and Trade Dynamics
Greer highlighted that the US is closely monitoring India’s actions related to its Russian oil purchases. He acknowledged it would be difficult for India to entirely stop buying Russian oil because of the attractive discounts offered. This stance indicates that the US is keeping a close eye on India's energy policies. Greer noted his frequent communication with his Indian counterpart, Piyush Goyal, the Commerce and Industry Minister, to discuss these matters. The US view on the India-EU agreement is influenced by former President Donald Trump's trade policies. Greer suggests the pact is a response to Trump’s emphasis on domestic production and protectionist trade measures.
A Different Perspective
Greer's comments present a contrast to earlier statements by US Treasury Secretary Scott Bessent. Bessent had hinted at the possible reduction of tariffs on Indian goods at a later stage, during the Davos 2026 event. This difference in opinion shows the evolving nature of international trade relations and the varying perspectives within the US government. The US view is that as Trump focused on boosting domestic production in the United States, other countries are looking for alternative markets to manage their over-production, making agreements like the one between India and the EU all the more important.
