US Treasury Secretary Scott Bessent on Wednesday expressed disappointment over the India–European Union Free Trade Agreement (FTA), alleging that Europe had prioritised trade interests over its stated commitment to Ukraine.
India and the EU concluded the agreement on Tuesday, describing it as a historic pact. European Commission President Ursula von der Leyen referred to the agreement as the “mother of all deals.”
US Raises Concerns Over Russian Oil, Tariffs
In an interview with CNBC, Bessent claimed that European countries have been purchasing refined petroleum products from India that were produced using Russian crude oil. He further alleged that the EU had been unwilling to align with the United States on imposing higher tariffs on Indian goods because it was negotiating the trade deal.
Last year, the US imposed additional 25 per cent tariffs on certain Indian imports, citing India’s continued purchase of Russian oil following the Ukraine conflict.
“They should do what’s best for themselves, but I find the Europeans very disappointing,” Bessent said when asked whether the India-EU trade agreement could affect US interests.
‘Trade Put Ahead of Ukraine,’ Says Bessent
The US treasury secretary added that Europe’s reluctance to join Washington on tariff measures reflected its trade priorities.
“The Europeans were unwilling to join us on higher tariffs, and it turns out it was because they wanted to do this trade deal,” Bessent said. “Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people.”
Key Provisions of the India-EU Trade Deal
Under the agreement, the European Union will eliminate tariffs on 99 per cent of Indian exports by value over seven years. Duties on nearly $33 billion worth of labour-intensive goods, including textiles, leather, footwear, gems and jewellery, will be removed as soon as the pact comes into force.
India, in turn, will cut tariffs on 96.6 per cent of EU exports, with nearly one-third of the reductions taking effect immediately once the agreement becomes operational in early 2027, according to an earlier HT report.
India-EU Summit in New Delhi
European Council President Antonio Costa and European Commission President Ursula von der Leyen were hosted by Prime Minister Narendra Modi during the India-EU Summit in New Delhi. Both leaders also attended the Republic Day celebrations as chief guests, underscoring the growing strategic and economic partnership between India and the EU.
