US Treasury Secretary Slams European Nations Over India-EU Trade Agreement
In a strongly worded critique, US Treasury Secretary Scott Bessent has expressed sharp disapproval of European countries for their recent trade agreement with India, suggesting it undermines efforts in the Ukraine-Russia conflict. During an interview with CNBC on Wednesday, Bessent was questioned about whether the newly concluded India-EU trade deal poses a threat to American interests.
"Very Disappointed" with European Actions
While acknowledging that nations should act in their own best interests, Bessent stated he was "very disappointed" with Europe's approach, particularly given the ongoing war in Ukraine. "The Europeans are on the front line of the Ukraine-Russia war," Bessent emphasized, pointing to what he sees as contradictory behavior.
He highlighted that after India began purchasing sanctioned Russian oil, European countries subsequently bought refined petroleum products from India. "So, the Europeans have been funding the war against themselves," Bessent asserted, suggesting this indirect support benefits Russia's war efforts.
Divergence on Sanctions Enforcement
The US Treasury Secretary noted that while Washington imposed a 25 percent tariff on India for buying Russian oil, European nations declined to join these sanctions. "The Europeans were unwilling to join us and it turns out because they wanted to do this trade deal," Bessent explained, indicating a prioritization of trade relations over collective security measures.
Bessent's criticism extended to what he perceives as Europe placing economic interests above humanitarian concerns. "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 stated bluntly. "European trade, more important than ending the war in Ukraine."
Historic India-EU Trade Agreement
These comments emerged just one day after India and the European Union announced the conclusion of negotiations on a comprehensive free trade agreement, marking the end of talks that began nearly two decades ago. Indian officials have described this pact as the "mother of all deals", representing India's 19th major trade agreement.
The landmark agreement is expected to:
- Significantly boost India's exports to the 27-nation EU bloc
- Transform competitive dynamics across multiple domestic industries
- Create new economic opportunities amid challenging global conditions
Global Trade Under Strain
This development occurs during a period of considerable strain in international trade relations, characterized by:
- High tariff barriers imposed by the United States
- Fragile global supply chains requiring restructuring
- Ongoing geopolitical tensions, including the Russia-Ukraine conflict
India currently faces substantial tariffs from the United States, while the European Union also confronts potential increases in American duties. The India-EU agreement represents a strategic realignment in global trade partnerships as nations navigate these complex economic and political challenges.
The Treasury Secretary's remarks underscore growing tensions between traditional Western allies regarding their approaches to balancing economic interests with geopolitical responsibilities, particularly concerning the ongoing conflict in Eastern Europe.
