eu india trade deal – Artifex.News

Bessent says disappointed by EU-India deal; South Korea must ratify trade deal

admin — Thu, 29 Jan 2026 01:19:00 +0000

Treasury Secretary Scott Bessent speaks during an event at Carnegie Mellon Auditorium on Wednesday.
| Photo Credit: AP

U.S. ‍Treasury Secretary Scott Bessent said on Wednesday (January 28, 2026) he was disappointed by Europe’s decision to strike a major trade agreement with India, saying it showed Europe put trade ‌ahead of the interests of the Ukrainian people.

Mr. Bessent told CNBC that Europe had been buying refined products made in India with sanctioned Russian oil supplies, and had been unwilling to match higher U.S. tariffs on Indian goods because they were separately negotiating a trade agreement.

The European Union on Tuesday (January 27, 2026) finalised a long-delayed trade deal with India that aims to boost two-way trade and reduce the bloc’s reliance on the United States amid growing global trade tensions.

The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs on ⁠96.6% of traded goods by value, and will lead to savings of €4 billion ($4.8 billion) in duties for European companies, the EU said.

Asked whether this deal and others among countries excluding the United States would threaten the U.S., Mr. Bessent ⁠said, “They should do what’s best for themselves, but I will tell you, I found, I find the Europeans very disappointing.”

He said the deal made it clear why Brussels had balked at joining Washington’s decision to impose 25% tariffs on India last ‌year as part of a push to reduce its purchases of ‌Russian oil.

“The Europeans were unwilling to join us, and it turns out, because they wanted to do this trade deal,” he said.

“So every time ‍you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people.”

Mr. Bessent last week had signaled the potential removal ‍of the 25% additional U.S. tariffs on India following a sharp reduction in Indian imports of Russian oil.

Also Read |Europe financing ‘war’ against itself by buying Russian oil products from India: Bessent

Mr. Bessent’s disparaging comments about Europe came amid heightened tensions after President Donald Trump threatened to raise tariffs on imports from certain European countries over their opposition to his pursuit of Greenland. That tariff threat was later dropped, but it left many Europeans unsettled and anxious about the future of Transatlantic trade.

U.S. officials remain frustrated that the EU has not enacted the tariff reductions it promised as part of a framework ⁠trade deal reached with Washington in July.

Those concerns were heightened this week when Mr. Trump raised duties on imports from South Korea to 25% from 15%, citing slow moves by the country’s parliament to implement a framework trade agreement reached ⁠with Washington last year.

Mr. Bessent defended Mr. Trump’s action, saying it was “helpful to get things moved along”, adding that the South Korean parliament needed to ratify the trade deal.

Mr. Trump on Tuesday (January 27) said he expected the United States and South Korea to work out a solution, but he did not elaborate. South Korean officials are ⁠due to arrive in Washington on Wednesday (January 28) for talks with trade officials.

Published – January 29, 2026 06:49 am IST

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Europe financing ‘war’ against itself by buying Russian oil products from India: Bessent

admin — Mon, 26 Jan 2026 17:54:00 +0000

U.S. Treasury Secretary Scott Bessent. File.
| Photo Credit: Reuters

The US imposed 25%tariffs on India for buying Russian oil, but the Europeans signed a trade deal with New Delhi, Treasury Secretary Scott Bessent said as he emphasised that Europe is financing the “war” against itself by purchasing refined Russian oil products from India.

U.S. President Donald Trump has worked to negotiate a settlement on the Russia-Ukraine conflict, Mr. Bessent said, adding that the U.S. has made much bigger sacrifices than the Europeans.

“We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” Mr. Bessent told ABC News Sunday (January 25, 2026).

“And just to be clear again, the Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves,” he said, adding that under Trump’s leadership, “we will eventually end” the Russia-Ukraine war.

The Trump administration has imposed 50% tariffs on India, including 25% for Delhi’s purchases of Russian oil. India and the European Union are set to announce on January 27 the conclusion of negotiations and finalisation of a free trade agreement, aimed at boosting economic ties between the two regions amid disruptions in global trade due to U.S. tariffs. The talks started in 2007.

European Commission President Ursula von der Leyen, who is currently in India and was the Chief Guest at the 77th Republic Day celebrations in New Delhi, has termed the EU-India FTA as the “mother of all trade deals”.

Published – January 26, 2026 11:24 pm IST

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EU suspends GSP export benefits; to impact India’s shipments

admin — Thu, 22 Jan 2026 13:41:00 +0000

The European Union (EU) has suspended export benefits to sectors such as textiles and plastics under a preferential scheme for India and two other countries from January 1, a move that will impact the country’s shipment to the 27-nation bloc.

The development is important as the two sides are likely to announce the closure of negotiations for a free tarde agreement (FTA) on January 27.

According to the Official Journal of the European Union, the European Commission on September 25, 2025, laid down rules for the application of the regulation with regard to the suspension for 2026-2028 of certain tariff preferences granted to certain GSP beneficiary countries – India, Indonesia and Kenya.

“It shall apply from 1 January 2026 until 31 December 2028…,” it said.

Commenting on the development, think tank Global Trade Research Initiative (GTRI) said from January 1, 2026, India faces a “major setback” in the EU market, as 87% of its exports begin paying higher import tariffs following the European Union’s suspension of GSP (Generalised Scheme of Preferences) benefits.

Only about 13% of exports, including agriculture and leather, retain the benefits under this scheme, it said.

GSP concessions allowed Indian exporters to ship at less than MFN (most favoured nation) tariffs to EU markets. Now, concessions are suspended for 87% value of Indian goods to the EU.

In simple terms, an apparel product facing a 12% tariff paid only 9.6% under the GSP. From January 1 this year, this benefit ends, and exporters must pay the full 12% duty.

The EU has removed GSP benefits across almost all major industrial sectors – minerals, chemicals, plastics and rubber, textiles and garments, stone and ceramics, precious metals, iron and steel, base metals, machinery, electrical goods and transport equipment – which together form the backbone of India’s exports to Europe.

The EU periodically reduces these benefits, as it did earlier in 2013 and 2023. This time, the concessions have been completely withdrawn for three years from 2026 to 2028.

“While there is optimism over the conclusion of the India–EU Free Trade Agreement, Indian exporters will, in reality, confront higher trade barriers in the near term, as the loss of GSP preferences coincides with the start of the tax phase of the EU’s Carbon Border Adjustment Mechanism (CBAM),” GTRI Founder Ajay Srivastava said.

Setback for garment sector

With the FTA’s implementation likely to take at least a year, if not longer, India’s exports to the EU will face a difficult period marked by higher tariffs, rising compliance costs and weakened competitiveness, hitting exporters just as global trade conditions remain fragile, he said.

He also said that in highly price-sensitive sectors such as garments, this increase is enough to undermine India’s competitiveness and push EU buyers toward duty-free suppliers like Bangladesh and Vietnam.

The EU’s GSP is a unilateral trade arrangement that allows developing countries to export to the EU at lower-than-MFN tariffs.

Countries are grouped by income and export competitiveness, and benefits are withdrawn through ‘graduation’ once exports in a product group become large over time.

The EU’s move follows its GSP graduation rules, under which preferences are withdrawn once exports in a product group cross a threshold for three consecutive years.

“Accordingly, India has been graduated for 2026–2028 under Commission Implementing Regulation (EU) 2025/1909, adopted in September 2025. While legally justified, the economic impact is sharp,” Mr. Srivastava said.

India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17% of India’s total exports, and the bloc’s exports to India constitute 9% of its total overseas shipments.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the EU has withdrawn GSP tariff preferences on nearly 87% of Indian exports, requiring most products to now enter at full MFN duty rates and eliminating an average of around 20% tariff advantage earlier enjoyed by Indian exporters.

“This has materially weakened India’s price competitiveness vis-a-vis suppliers such as Bangladesh and Vietnam, which continue to benefit from duty-free or lower-duty access,” Mr. Sahai said.

He said the impact is most pronounced for industrial exports, including minerals, chemicals, plastics, iron and steel, machinery, and electrical goods, which constitute a major share of India’s shipments to the EU and are now fully exposed to tariffs.

He added that preferential access is now limited to a small basket of products, mainly select agricultural items, leather goods, and handicrafts, together accounting for less than 13% of India’s total exports to the EU.

Published – January 22, 2026 07:11 pm IST

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