How the India-EU trade agreement undermines US economic coercion

The India-EU Trade Agreement

The India-EU trade agreement marks a significant moment in the global political economy. It's described as 'the mother of all deals' linking India, one of the world's fastest-growing economies, with the EU, the largest single market.

Impact on US Economic Coercion

The agreement reduces Washington's ability to use tariffs as leverage and dictates global economic rules. European Commission President Ursula von der Leyen called it a 'strategic partnership,' while US Treasury Secretary Scott Bessent criticized the EU for prioritizing trade over Ukrainian issues.

Broad Implications

This deal reflects a shift towards flexible partnerships and diversified trade routes, reducing reliance on external economic pressure from any single power. It offers market access for textiles, pharmaceuticals, and IT services in India and supply chain resilience in Europe, positioning India as a long-term manufacturing partner outside China.