NEW YORK, Jan 29: The United States has strongly criticized the newly signed free trade agreement (FTA) between India and the European Union, with senior Trump administration officials accusing Europe of prioritizing trade over efforts to pressure Russia over the Ukraine war.
US Treasury Secretary Scott Bessent described the Europeans as “very disappointing,” saying they refused to join Washington in imposing tariffs on India for buying Russian oil because of their pursuit of the trade deal with New Delhi.
In an interview with CNBC, Bessent argued that Europe has indirectly funded Russia’s war effort by purchasing refined fuel products made from Russian crude imported by India.
He said the US imposed a 25% tariff on India for buying sanctioned Russian oil, but European countries declined to take similar action.
According to Bessent, Europe’s willingness to proceed with a major trade deal with India undermines its public stance on supporting Ukraine.
“Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people,” he said.
Bessent also pushed back on claims that Europe had no choice due to its energy needs, stating that Europeans wanted cheap energy and could have accepted higher prices rather than buying Russian-linked products.
His remarks marked the second straight day of criticism from Washington over the India-EU agreement.
On Tuesday, US Trade Representative Jamieson Greer said India emerged as the clear winner in the deal.
Speaking to Fox Business, Greer said India secured greater access to European markets and may benefit from expanded mobility and immigration opportunities for Indian workers in Europe.
He added that the EU appears to be “doubling down on globalisation” while the US is shifting toward domestic production under President Donald Trump’s trade policies.
Greer also framed the deal strategically, arguing that as the US tightens access to its market, trade-dependent economies like the EU are seeking alternative outlets for their goods.
He said Europe is turning to India to absorb its excess production as it faces reduced access to the US market.
India and the EU hailed the agreement—dubbed the “mother of all deals”—as a landmark pact creating a combined market of two billion people and accounting for nearly a quarter of global GDP.
The FTA will cut tariffs on 99% of Indian exports to the EU and over 97% of EU exports to India. Indian sectors such as textiles, apparel, leather goods, footwear and marine products are expected to benefit, while Europe will gain in areas including automobiles, wine, chemicals and pharmaceuticals. (AP)
