The US, which was eyeing a quick trade deal with India but could not find a common ground, in its first comments on the India-EU Free Trade Agreement (FTA) has said that India has emerged as the winner.
“I think India comes out on top on this, frankly. They get more market access in Europe. It sounds like they have some additional immigration rights. I don’t know for sure, but President (Ursula) von der Leyen of the EU has talked about mobility for Indian workers into Europe. So I think on the net, India’s gonna have a heyday with this. They have low-cost labour,” US Trade Representative (USTR) Jamieson Greer said in an interview with Fox Business.
Multipolar Trade Shift
The FTA signed on Tuesday has drawn attention all over the world and has been seen as an example of the emergence of a multipolar trade world. With the US involved in tough trade negotiations across the world and handing out tariff threats liberally, the countries are looking at partnerships beyond the US that would keep their international trade going.
Divergent Economic Strategies
Greer pointed to the contrasting approach of the US and EU, stating that Brussels is “doubling down on globalisation” when the US is trying to fix some of the “problems of globalisation”..
“First of all, strategically, it’s important to understand that because President (Donald) Trump has prioritised 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 that they can’t keep sending all their stuff to the United States,” Greer said.