BRUSSELS, Jan 28: The European Union’s ambitious free trade agreement with India highlights Brussels’ drive to forge new global partnerships as long-standing reliance on the United States faces uncertainty under the Trump administration.
The deal reflects growing concern across European capitals over Washington’s unpredictability on trade, defence and diplomacy, prompting the EU to seek greater autonomy and diversification.
EU–India trade deal: A strategic milestone
Signed by European Commission President Ursula von der Leyen in New Delhi, the EU–India free trade agreement has been described as the “mother of all deals.”
It could affect nearly 2 billion people and eliminate tariffs on about 97 per cent of EU exports to India and 99 per cent of Indian goods entering the EU.
Analysts say the pact strengthens economic and strategic ties as both sides seek to counter China’s growing influence and adapt to weakening transatlantic cooperation.
Expanding Brussels’ global reach
The India agreement is part of a broader EU strategy that has seen trade deals signed or pursued with Indonesia, Japan, Mexico, Mercosur nations, and closer ties with countries such as South Korea and Australia.
European leaders argue that the international order can no longer be taken for granted, pushing the bloc toward a more autonomous and globally engaged role.
Defence sutonomy gains momentum
Russia’s invasion of Ukraine and US pressure on Europe to shoulder more defence responsibility have accelerated EU defence initiatives.
The bloc has agreed to boost defence spending, including €150 billion in loans for missile defence, drones, cyber systems and military infrastructure.
European arms manufacturers have seen rising stock prices amid the push for strategic autonomy.
Reducing energy dependence
While cutting energy ties with Russia, the EU has increased reliance on US oil and liquefied natural gas, a dependency officials now view as risky.
Brussels aims to diversify energy sources through investment and alternative suppliers in regions such as the eastern Mediterranean and the Gulf.
Experts say while full decoupling is difficult, expanding global partnerships strengthens the EU’s position in dealing with major powers like the US, China and Russia. (AP)
