NEW DELHI: Union Commerce Minister Piyush Goyal on Tuesday firmly dismissed speculations that US President Donald Trump played any role in bringing India and the European Union together for their landmark free trade agreement, stating emphatically, "I don't think we even discussed this at any point of time."
Goyal Rejects Trump's Influence on Trade Pact
Goyal made these remarks during a joint press conference in New Delhi while responding to a question that sought to link the India–EU Free Trade Agreement (FTA) to recent US tariff actions. When a reporter asked whether President Trump, under whose administration both India and the European Union faced steep tariffs, acted as a unifying factor in pushing the deal forward, Goyal provided a clear and direct rebuttal.
Timing Amid Global Trade Uncertainty
Earlier in the day, India and the 27-nation European Union concluded negotiations for the long-pending trade pact, described as the "mother of all deals." The timing is particularly significant, coming amid renewed global trade uncertainty driven by aggressive US tariff policies, fragile supply chains, and the prolonged Russia-Ukraine war.
Details of the Ambitious Agreement
Goyal further described the pact as a "balanced, fair, and win-win" deal for businesses on both sides, noting that sensitive issues were handled independently. He announced that the ambitious agreement 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 added.
Two Decades of Negotiations
The deal has been finalized after negotiations spanning more than two decades. Once implemented, it will create a combined market of nearly 2 billion people, bringing together India, the world’s fourth-largest economy, and the EU, the second-largest economic bloc.
Key Benefits and Economic Impact
Under the agreement, 93% of Indian exports will enjoy duty-free access to the European Union, while imports of luxury cars and wines from Europe will become cheaper in India. India and the EU together account for about 25% of global GDP and nearly one-third of global trade, estimated at around USD 33 trillion.
Goyal emphasized that the pact would open up a wide range of opportunities for investment and trade. With this agreement, the EU becomes India’s 22nd FTA partner.
US Criticism and Global Reactions
The development has earlier drawn criticism from the United States. Treasury Secretary Scott Bessent remarked that Washington had made greater sacrifices than Europe in the Russia-Ukraine conflict, stating, "We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India."
Bessent added that Russian oil is refined in India and sold to Europe, commenting, "They are financing the war against themselves," in criticism of the India–EU deal. However, Trump has not yet responded to the pact.
This historic agreement marks a significant milestone in India's trade diplomacy, reinforcing its strategic economic partnerships amid shifting global dynamics.
