Washington, Jan 29: US Treasury Secretary Scott Bessent on Wednesday sharply criticised the recently concluded India-European Union Free Trade Agreement (FTA), describing Europe’s decision to proceed with the pact as “very disappointing” and casting doubt on the EU’s commitment to shared geopolitical priorities amid the Russia-Ukraine war.Finalised on Tuesday after years of negotiations and hailed by European leaders as a major breakthrough, the India-EU trade deal aims to eliminate or significantly reduce tariffs on about 96.6 % of traded goods by value, potentially doubling European exports to India by 2032 and saving EU firms roughly €4 billion in duties.
In an interview with CNBC, Bessent expressed frustration that Brussels moved forward with the agreement without aligning with Washington’s tougher trade posture toward India. He claimed that European governments had refused to join the United States in imposing higher tariffs on Indian imports, largely because they were pursuing their own trade talks with New Delhi. “They should do what’s best for themselves, but I will tell you, I find the Europeans very disappointing,” Bessent said.
Bessent’s most pointed criticism was geopolitical. He said that by advancing the trade pact, European nations appeared to put commercial interests ahead of solidarity with the Ukrainian people, at a time when the conflict with Russia continues. “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 said, linking the situation to broader Western unity over the war.
He also alleged that some European countries have been buying refined fuel products from India made with sanctioned Russian crude oil, suggesting this indirect trade could undermine efforts to tighten pressure on Moscow. “The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products,” Bessent said, adding that this dynamic amounted to Europe “financing the war against themselves.”
Bessent’s comments come amid broader tensions between the United States and its European allies over trade policy, tariffs and sanctions coordination. Last year, the U.S. imposed additional tariffs of 25 % on Indian goods in part due to New Delhi’s continued purchases of Russian oil—measures that European partners chose not to mirror.
The U.S. official’s remarks underscore a challenging balancing act: while global powers seek to advance economic ties with fast-growing markets like India, disagreements persist over how trade agreements intersect with foreign policy goals. European leaders, meanwhile, have defended the India deal as opening vast commercial opportunities and strengthening strategic ties with a major global economy.
The India-EU FTA still requires ratification by EU member states, the European Parliament, and India’s cabinet before it can fully enter into force, and its implementation timeline extends into the coming years.