Bessent Says Europe Chose Trade Over Ukraine
India and the European Union finalised a “historic” free trade agreement this week, calling it the “mother of all deals.” The pact, however, drew sharp criticism from the United States. US Treasury Secretary Scott Bessent said Europe’s decision disappointed him deeply. He argued that the EU prioritised economic interests over its public support for Ukraine. His comments came a day after India and the EU officially concluded the agreement.
US Flags Russian Oil Link in India-EU Trade
In an interview with CNBC, Bessent said European nations continued buying refined petroleum products from India made using Russian crude oil. He claimed this contradicted Europe’s stated position on the Ukraine conflict. He also said the EU refused to match US tariffs on Indian goods to protect its trade negotiations. Last year, the US imposed an additional 25% tariff on Indian imports over Russian oil purchases.
‘Europe Put Trade First,’ Says US Treasury Secretary
Bessent said European leaders often speak about standing with Ukraine but act differently in practice. He stated that Europe chose economic gain when it mattered most. According to him, the EU avoided aligning with Washington on tariffs to secure the trade deal with India. “Every time they talk about Ukraine, remember this choice,” he said, stressing the contrast between words and actions.
Key Gains Under the India-EU Free Trade Pact
The agreement removes tariffs on 99% of Indian exports by value over seven years. The EU will quickly eliminate duties on labour-intensive goods worth $33 billion. These include textiles, leather, footwear, gems, and jewellery. India will cut tariffs on 96.6% of EU exports in return. Nearly one-third of these reductions will take effect immediately once the deal begins in early 2027. Leaders sealed the agreement during the India-EU Summit attended by Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa.
