US Treasury Secretary Bessent Calls India-EU FTA 'very Disappointing'

Washington: US treasury secretary Scott Bessent on Wednesday called the India-EU free trade agreement "very disappointing" and accused the European Union of prioritising economic interests over its commitment to support Ukraine. 

Bessent's comments came just a day after India and the EU concluded the "mother of all deals" term used by European Commission President Ursula von der Leyen.

What did Scott Bessent say?

In an interview with CNBC, the US treasury secretary said that "Europe had been purchasing refined products made in India with Russian oil supplies."

When asked about the India-EU trade deal, Bessent said that "They (Europe) should do what's best for themselves, but I will tell you, I find the Europeans very disappointing because the Europeans are on the frontlines of the Ukraine-Russia war. India started buying sanctioned Russian oil, and guess who was buying the refined products? The Europeans."  

“So, the Europeans have been funding the war against themselves. The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves,” he added.

Bessent also pointed to energy trade patterns, saying some European nations have bought refined products from India that originated from Russian oil, despite sanctions and US tariffs linked to such imports. 

“The Europeans were unwilling to join us, and it turns out because they wanted to do this trade deal. Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people,” he said.

What is the deal?

The Free Trade Agreement (FTA) between India and the European Union was officially sealed on January 27. Prime Minister Narendra Modi said that the historic trade agreement, which had been stalled for decades, has finally been completed.

Under this deal, both sides have agreed to open their markets to each other. Tariffs will be reduced or eliminated on up to 90 percent of products. This move will make European products cheaper in India. At the same time, India's exports to Europe will increase. Let's look at the benefits of this India-EU deal.