All eyes are on Trump’s reaction to the ‘mother of all deals’ between India and the EU
Published Tue, Jan 27 20265:32 AM ESTUpdated 3 Hours Ago
Holly Ellyatt CNBC
Key Points
- India and the EU have praised the “landmark” free trade agreement, calling it the “mother of all deals.”
- The trade deal is being widely seen as a strategic hedge against volatile U.S. trade policies.
- Attention has turned to how U.S. President Donald Trump could react to the deal.
Hosuk Lee-Makiyama, director of the European Centre for International Political Economy, said the EU-India trade deal is one of the best agreements available to the two sides, which have traditionally been protectionist when it comes to strategic sectors of their economies, like agriculture and autos.
“This is a deal that they can do that will have a positive impact, while the U.S. and China will remain closed as new market openings go. So in that respect, this is probably one of the best deals they can do at the moment,” Lee-Makiyama told CNBC on Tuesday.
Both India and the EU had reasons for forging ahead with a deal, despite the inevitable wrath it might unleash in Washington, he added.
“But there is a significant difference [with this landmark deal], though, which is that India actually failed to secure the deal with United States,” while “EU trade ministers are now getting used to the fact that there is a new tariff threat coming from Washington every week, and of course, their skins get a little bit thicker [each time],” he told CNBC’s “ Europe Early Edition.”
Trump's reaction to the EU-India free trade agreement |
