US Treasury Chief Criticises EU-India Trade Deal, Calls It “Disappointing” Amid Ukraine War
US Treasury Secretary Scott Bessent on Wednesday expressed disappointment over the European Union’s decision to conclude a major free trade agreement with India, claiming the move reflected a preference for commercial interests over solidarity with Ukraine.
Speaking to reporters, Bessent said Europe’s engagement with India, particularly in the energy and trade sectors, raised concerns in Washington at a time when Western countries are seeking to maintain pressure on Russia over its invasion of Ukraine.
According to a Reuters report, Bessent alleged that several European nations had been purchasing refined fuel products from India that were made using Russian crude oil, despite international sanctions. He suggested that the ongoing trade negotiations between the EU and India had made European governments less willing to align fully with the US position.
Remarks Come After Landmark India-EU Pact
Bessent’s comments came a day after India and the European Union formally announced the conclusion of their long-awaited free trade agreement. The deal was unveiled by Prime Minister Narendra Modi along with European Commission President Ursula von der Leyen and European Council President Antonio Costa.
The agreement is part of a broader five-year cooperation roadmap that also includes defence, security, energy and mobility partnerships. Both sides have described the pact as a major step towards strengthening economic and strategic ties in a rapidly changing global environment.
The FTA marks the end of nearly two decades of negotiations and is expected to become one of the world’s largest bilateral trade agreements.
Modi Hails Deal as “Historic”
Addressing the National Cadet Corps (NCC) Prime Minister’s Rally in Delhi, Prime Minister Modi described the India-EU agreement as “historic” and transformative for the country’s economic future.
He said the pact would strengthen the Atmanirbhar Bharat mission and reinforce the vision of “Make in India, Make for the World”.
“The world is calling this the mother of all deals and a game-changer,” Modi told the gathering. “It will give our youth the freedom to dream bigger and achieve more.”
He added that creative sectors such as film, gaming, fashion, music, digital content and design would benefit significantly, along with education, research, information technology and professional services.
Major Boost for Exports and MSMEs
According to Modi, the agreement will remove or sharply reduce tariffs on more than 99% of India’s exports to the European Union.
Key beneficiaries are expected to include:
- Textiles and garments
- Leather and footwear
- Gems and jewellery
- Engineering goods
- Handicrafts and artisan products
He said the pact would provide micro, small and medium enterprises (MSMEs), weavers and artisans with direct access to European markets.
The Prime Minister also highlighted that the deal could encourage fresh investments in manufacturing sectors such as electronics, chemicals, pharmaceuticals and engineering, while strengthening agriculture, food processing and fisheries.
Employment Opportunities for Youth
Modi noted that the agreement could create new employment pathways for Indian professionals across the 27 EU member states.
Sectors likely to generate jobs include green technology, logistics, design, advanced manufacturing, and digital services. He said young Indians with technical and creative skills would find wider opportunities in Europe under the new framework.
EU-US Differences Over Trade and Ukraine
Bessent’s remarks underline growing differences between the US and Europe over balancing geopolitical priorities with economic interests.
While Washington has pushed for strict enforcement of sanctions on Russia, several European countries continue to rely on energy supplies and refined products routed through third countries, including India.
Analysts say the India-EU FTA reflects Europe’s desire to diversify trade partners, reduce dependence on China, and deepen ties with major emerging economies, even as the Ukraine conflict continues.
Our Thoughts
The criticism from the US Treasury Secretary highlights the complex intersection of geopolitics and global trade. While Washington expects strong alignment on Ukraine-related sanctions, Europe appears increasingly focused on securing long-term economic stability through partnerships such as the India-EU FTA.
For India, the agreement represents a major strategic and economic breakthrough, opening doors for exports, investment and employment. However, it also places New Delhi at the centre of evolving power dynamics between Western allies.
How India navigates these pressures while protecting its national interests will shape its global standing in the coming years.