Union Commerce Minister Piyush Goyal on Tuesday rejected the idea that US President Donald Trump played any role in bringing India and the European Union closer during free trade negotiations.
At a press conference, a journalist asked whether Trump acted as a “unifier”, especially since both India and several European countries have faced US tariffs. Goyal made it clear that this was never part of the discussion.
“I do not think we even discussed this at any point of time,” Goyal said.
Deal concluded after two decades
Earlier in the day, India and the European Union, a bloc of 27 countries, concluded negotiations on a wide-ranging free trade agreement after nearly 20 years of talks. The agreement has been described as the “mother of all trade deals” because of its scale and long-term impact.
The deal is expected to significantly boost trade between India and Europe. The EU has said it will eliminate or reduce tariffs on most traded goods, helping European companies save billions of euros in duties. EU exports to India are projected to double by 2032.
For India, the agreement means that 93 per cent of its exports will get duty-free access to the EU market. At the same time, imports of luxury cars and wines from Europe are expected to become cheaper in India.
Goyal said the agreement will now go through legal checks on a fast-track basis and is likely to be implemented within the 2026 calendar year.
“Every agreement stands on its own legs, and this is a wonderful agreement. It’ll be taken up for a legal scrubbing on a fast track basis…We do hope that we should be able to celebrate the entry into force of this agreement within calendar 2026 itself,” he said while briefing the media during the visit of senior EU leaders to India.
Taken together, India and the EU account for about 25 per cent of global GDP and nearly one-third of global trade. Since 2014, the NDA government has steadily expanded India’s trade partnerships, signing agreements with countries such as Mauritius, the UAE, Australia, Oman and the UK, and announcing new deals with New Zealand.
Global tensions shape the backdrop
The timing of the agreement is significant. It comes amid global uncertainty driven by geopolitical tensions, the ongoing Russia-Ukraine war, and shifting trade policies under President Trump.
Trump has repeatedly imposed tariffs on European goods claiming that the EU enjoys an unfair trade surplus with the US. These measures have raised concerns in Europe over rising export costs and economic instability.
Earlier this month, Trump also increased tensions by pushing for US control over Greenland and announcing a 10% import tax on goods from eight European countries that opposed the move.
Washington voices discomfort
The United States has expressed discomfort over the timing of the India-EU agreement. US Treasury Secretary Scott Bessent criticised the EU for concluding a trade pact with India while trade negotiations between New Delhi and Washington are still ongoing.