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India EU Mother of All Trade Deals Triggers US Anger...

Date: Jan 27, 2026 | Source: Fela News

A major global trade agreement between India and the European Union has drawn strong reactions from the United States, turning what was meant to be an economic milestone into a geopolitical flashpoint. The deal, often described as the “mother of all trade agreements,” aims to deepen economic cooperation between India and Europe after nearly two decades of negotiations.

The agreement focuses on reducing tariffs, boosting exports, encouraging investment, and improving access to markets for businesses on both sides. Together, India and the European Union represent nearly two billion people and a significant share of the world’s economy. Leaders believe the pact can strengthen supply chains, create jobs, and reduce dependency on limited trade partners.

However, the United States has expressed discomfort over the timing and implications of the deal. American officials argue that Europe’s growing trade engagement with India indirectly connects to Russian energy flows. According to US concerns, Russia exports crude oil to India, which is refined and later sold as petroleum products to European nations. This, they claim, weakens the effectiveness of sanctions imposed after the Ukraine conflict.

The statement has sparked sharp debate. European leaders insist the trade pact is purely economic and essential for long-term stability. They argue that energy purchases are driven by necessity, rising costs, and global shortages rather than political alignment. Europe also maintains that diversifying partnerships with India is crucial for balancing global trade power.

India has responded calmly, emphasizing that its energy imports follow international regulations and that its trade relations are based on national interest. Indian officials have highlighted that the agreement protects sensitive sectors while opening new opportunities for manufacturing, technology, pharmaceuticals, and services.

Experts believe the criticism reflects wider global tensions rather than flaws in the deal itself. As countries realign trade partnerships in an uncertain world economy, clashes between economic interests and political strategies are becoming unavoidable.

Despite the controversy, negotiations between India and the EU remain on track. Once finalized, the agreement is expected to reshape global trade patterns and strengthen India’s position as a key economic partner. While diplomatic disagreements may continue, the deal marks a significant step toward a more interconnected global economy.

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