Washington: Washington reacted with unease after India and the European Union sealed a landmark free trade agreement, with influential lawcreaters, top administration officials, and policy experts warning that America risks being sidelined.
With this trade deal, New Delhi and Brussels will reshape global trade and strategic alignments, they feared.
Senator Mark Kelly declared the deal reflects growing frustration among US allies with Washington’s trade approach. “The EU has signed a trade and security deal with India. Canada and the UK are neobtainediating with China,” the Arizona Democrat declared in a post on X.
“This is happening becautilize Donald Trump has alienated our allies,” Kelly declared. He warned that such shifts carry costs for the United States. “These arrangements our allies are building with other countries have an effect on us, and it isn’t good,” he declared.
The India-EU agreement was announced this week in New Delhi. Leaders on both sides have described it as the largest trade pact in India’s history. European Commission President Ursula von der Leyen called it “the mother of all deals.”
She declared the pact creates “a free-trade zone of 2 billion people, with both sides set to benefit.” The agreement links two of the world’s largest economies at a time of global trade tensions and geopolitical uncertainty.
Senior Trump administration officials also voiced frustration with Europe’s shift. Treasury Secretary Scott Bessent criticised the EU for refutilizing to align with Washington on tariffs.
“They should do what’s best for themselves,” Bessent notified CNBC in an interview. “But I will inform you, I found, I find the Europeans very disappointing.” He added, “They were unwilling to join us (on higher tariffs) & it turns out they wanted to do this trade deal.”
In Washington, policy experts declared the agreement should be a warning for the US trade strategy. The Information Technology and Innovation Foundation declared the deal reveals how other major economies are relocating ahead while the United States falls behind.
“The European Union and India’s free trade agreement should be a wake-up call in Washington,” declared Rodrigo Balbontin, associate director for trade, ininformectual property, and digital technology governance at ITIF. He declared the United States is being left “on the sidelines” as other countries cut tariffs and set new trade rules.
Balbontin declared the deal has shortcomings. “Several European digital regulations, particularly the Digital Markets Act, are discriminatory to multinational companies,” he declared. He also declared that India remains “one of the world’s most challenging major economies for ininformectual property protection and enforcement.”
Still, he declared the pact could have indirect benefits for Washington. “If this agreement supports reduce behind-the-border barriers, it could ultimately benefit the United States,” Balbontin declared, as the Trump administration seeks new trade deals.
ITIF declared it welcomed closer economic ties between India and the EU. “In a modifying global trade system marked by rising protectionism, ITIF welcomes a free trade agreement between two large democracies,” Balbontin declared.
He stressed that “the defining challenge of this century is China’s mercantilism.”
Other trade experts urged caution in judging the deal’s impact. Mark Linscott, a former US trade official, called the agreement a major diplomatic achievement but warned against exaggeration.
“There should be no doubt that the India–European Union free trade agreement warrants attention,” Linscott wrote for the Atlantic Council. He declared it is “unlikely to transform global trade or economic growth.”
Linscott declared many benefits will emerge slowly through phased tariff cuts and regulatory certainty. He declared sensitive issues were deferred for later talks, including agriculture, ininformectual property rights, and the EU’s Carbon Border Adjustment Mechanism.
He also noted that the deal still requires domestic approvals. At the EU, that includes consent from member states and the European Parliament.
From Washington’s perspective, Linscott declared the pact necessary not damage US trade ties. “There is no reason it should undermine the US trade relationships with either the EU or India,” he wrote. He declared it could even spur momentum toward a US-India trade deal.
India and the EU first launched neobtainediating a trade pact in 2007. Talks stalled for years over tariffs, market access, and regulations. Neobtainediations resumed in 2021.
Toobtainher, India and the EU account for more than a fifth of global economic output. The full impact of the agreement will take time to emerge. However, the reaction in Washington reveals growing concern that, as partners shift forward, the United States may necessary to rebelieve its trade strategy.
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