India has an edge over the European Union (EU) in its “mother of all deals” free trade agreement (FTA) reached with the bloc on January 27, after nearly 20 years in debate, said Jamieson Greer, United States Trade Representative.
United States Trade Representative Jamieson Greer has said that India stands to benefit the most from the recently concluded Free Trade Agreement (FTA) with the European Union, citing greater market access, labour advantages, and potential mobility opportunities for Indian workers.
In an interview with a US TV channel, Greer highlighted India’s competitive advantage in terms of its low-cost labour and growing manufacturing base, saying India is set to gain enhanced access to European markets and may also benefit from expanded mobility provisions.
“I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly,” he said, adding, “They get more market access into Europe. It sounds like they have some additional immigration rights. I don’t know for sure, but President von der Leyen of the EU has talked about mobility for Indian workers into Europe. So, I think on net, India’s going to have a heyday with this.”
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Greer said EU’s focus on expanding its export basket comes from US President Donald Trump’s push for domestic production, so the trade pact must be viewed in the context of shifting global trade dynamics.
“Strategically, it’s important to understand that because President Trump has prioritised domestic production and essentially started charging a fee for other countries to access our market, these countries are trying to find other outlets for their overproduction,” he said.
A “trade-dependent” bloc like the EU now has to look for other markets to sell its products to, Greer noted.
“The EU is so trade-dependent, they need other outlets [since] they can’t keep sending all their stuff to the United States…And so, the EU is turning to India to try to find a place,” he added.
“They have low-cost labour, and it looks like the EU is doubling down on globalisation when we’re trying to fix some of the problems of globalisation here in the US,” the US Trade Representative said.
On the US’ own equation with India, Greer said they’re “watching India closely” and expect it to “wind down” its purchase of Russian crude further.
“They have made a lot of progress on this. I am in frequent contact with my counterpart in India. I have a great working relationship with him, but they still have a way to go on this point. They like the discount that you get from Russian oil, so it’s hard for them. The Treasury Department has put into place, you know, a few weeks ago now, more significant sanctions, so we expect India to continue to wind that down, but we’re watching it closely,” he said.
Greer’s remarks come a day after India and the EU signed a “milestone” deal that is being dubbed as India’s most strategic economic partnership, designed as a modern, rules-based trade pact, which responds to contemporary global challenges while enabling deeper market integration between the world's fourth- and second-largest economies.
With a combined market estimated at over USD 24 trillion and bringing massive opportunities for the 2 billion people of India and the EU, the FTA unlocks significant potential for trade and innovation.
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