India-EU Trade Deal Draws US Criticism; Treasury Secretary Scott Besent Expresses Disappointment

New Delhi: The recently concluded Free Trade Agreement (FTA) between India and the European Union (EU) has irked the United States, which has openly expressed concerns over the deal. On Wednesday, US Treasury Secretary Scott Besent criticized the agreement, signaling American disappointment.

In an interview with CNBC, Besent was asked whether the India-EU trade pact posed a threat to US interests. He replied that countries should pursue what is best for themselves. However, he expressed “considerable disappointment” over Europe’s move, particularly in the context of the ongoing Ukraine conflict.

Oil Trade Under Scrutiny
Besent also raised the issue of oil, noting: “We imposed a 25% tariff on India’s purchases of Russian oil. Imagine what happened next: last week, European nations concluded a trade deal with India.” He added that despite sanctions, India continued buying Russian oil, and European countries subsequently purchased products derived from the same oil. According to Besent, this effectively meant that European nations were indirectly funding actions they were opposed to in Ukraine.

Europe Prioritized Trade Over US Alignment
Besent said, “European countries were not willing to align with the US, and it became clear they wanted to pursue this trade agreement independently. Whenever you hear a European discuss the importance of Ukraine, remember that in practice, trade took precedence over humanitarian concerns.”

A Two-Decade Journey
The India-EU FTA marks the culmination of nearly 20 years of negotiations. Indian officials have described the deal as “the mother of all agreements.” It is India’s 19th trade agreement and is expected to significantly boost Indian exports to the 27-member EU bloc.

The pact also promises to reshape domestic industry competition in India. The agreement comes at a time when high US tariffs, supply chain disruptions, and ongoing geopolitical tensions including the Russia-Ukraine war have placed global trade under increasing pressure.