CHENNAI: The US on Wednesday offered its first public reaction to the recently concluded India-European Union trade agreement, with US Trade Representative Jamieson Greer acknowledging that India appears to have emerged as a major beneficiary of the pact, even as trade negotiations between New Delhi and Washington remain deadlocked.
Speaking at a media interaction, Greer said the India-EU deal positions India favourably by providing its exporters wider access to the European market and reinforcing the country’s advantage as a low-cost manufacturing and services hub. His remarks come at a time when the United States and India have struggled to bridge differences on market access, digital trade, intellectual property rights and tariff structures, leaving bilateral trade talks in a prolonged stalemate.
Greer’s comments underline a growing recognition in Washington that India’s trade strategy is increasingly focused on securing comprehensive agreements with major economic blocs, even as talks with the US have failed to gain momentum. By sealing a broad-based agreement with the EU, India has strengthened its foothold in one of the world’s largest consumer markets, potentially giving Indian exporters a competitive edge over rivals, including US firms, in key sectors.
According to officials familiar with the India-EU pact, the agreement is expected to reduce or eliminate tariffs across a wide range of goods, simplify regulatory procedures, and improve access for services and investment. Sectors such as pharmaceuticals, textiles, automotive components, chemicals, information technology, and renewable energy equipment are widely seen as major beneficiaries. For India, this could translate into higher exports, deeper integration into European supply chains and stronger investment inflows over the medium term.
From a US perspective, Greer’s assessment also reflects concern that American companies could face relatively higher barriers in Europe compared to Indian competitors if Washington remains outside similar preferential arrangements. This adds to the strategic urgency for the US to reassess its trade engagement with India, particularly as New Delhi’s economic ties with other major partners continue to expand.
Analysts say the contrast between the progress in India-EU negotiations and the impasse in India-US talks highlights differing approaches to trade policy. While the EU has shown willingness to engage in wide-ranging concessions to secure a comprehensive deal, US trade policy in recent years has been more cautious, emphasising enforcement, supply-chain resilience and selective sectoral agreements rather than sweeping free trade pacts.
For India, the positive reaction from the US Trade Representative is being viewed domestically as validation of its negotiating strategy. Policymakers believe that diversifying trade partnerships reduces dependence on any single market and strengthens India’s bargaining position in future negotiations, including with Washington.
However, experts caution that the benefits of the India-EU agreement will depend heavily on effective implementation, timely regulatory reforms and the ability of Indian firms, especially small and medium enterprises, to meet European standards. At the same time, they note that India and the US remain strategically aligned on several fronts, including defence, technology and regional security, suggesting that the current trade stalemate may not be permanent.
Greer’s remarks, therefore, serve both as an acknowledgment of India’s growing economic clout and as a subtle signal that Washington risks falling behind in shaping its trade relationship with one of the world’s fastest-growing major economies.
