Strategic maneuvering in international trade has yielded results for India, with its European Union free trade pact serving as leverage to fast-track a crucial US agreement. South Asia specialist Farwa Ameer of the Asia Society Policy Institute described the EU deal as a pressure point that nudged American negotiators into high gear.
Ameer’s Monday analysis underscored the deal’s opportune timing, right on the heels of the EU accord, which breathed new life into stalled India-US dialogues. The payoff: PM Narendra Modi and President Donald Trump unveiling a tariff-slashing pact, reducing US duties on Indian exports to 18% from 25% and scrapping a 25% penalty tied to Russian oil imports.
Negotiations spanned a challenging year, with breakthroughs emerging from a pivotal Modi-Trump call. Ameer flagged India’s nuanced Russia policy as lingering: ‘Diversification of energy sources won’t sever longstanding ties.’ Leadership engagement was the linchpin.
Veteran trade voice Wendy Cutler offered a comparative lens, highlighting India’s tariff edge over ASEAN competitors (18% vs. 19-20%). ‘Potentially a sweeter deal for the US than with the EU,’ she assessed, noting ambiguities in Trump’s rhetoric on India’s barrier reductions.
Social media from Trump projects bold reciprocity, with India aiming for zero impediments. Cutler framed the pact as a foundation for cooperation in high-stakes domains like critical minerals, advanced technology, and supply chain fortification.
Coinciding with this, EAM S. Jaishankar’s US visit for minerals discussions reinforces the pact’s broader implications for Indo-US partnership.