'America is the ultimate loser!': Author-commentator's message to Trump after India-EU FTA nears finalisation stage

Navroop Singh, author of The Great Reset and policy commentator, took shots at US President Donald Trump as the India-EU free trade agreement (FTA) nears its finalisation. Singh said that India's FTA with the EU, nearing finalisation without any compromise on agriculture, is "a message to Donald Trump's USA" that New Delhi would never compromise on its core interests like agriculture or dairy. 

His take comes as the European Union is reportedly set to formalise its largest-ever trade deal with India on January 27. The EU will send its officials to New Delhi to sign a trade agreement that excludes agriculture, according to European media reports. 

"The FTA with the EU without compromising on agriculture is a message to Donald Trump's USA that India will hedge and shall not compromise on its core interests like agriculture with the EU, or be it dairy with New Zealand! The Rafale deal with France and the submarine deal with Germany is a classic play to open one of the world's biggest markets for Indian goods," he wrote in a post on X. 

Furthermore, Singh said that, unlike the ASEAN FTA negotiated under the UPA regime, 99 per cent of Indian goods attract 0 per cent tariffs in the recent FTAs done with the UK, New Zealand, Australia, and Oman. "India is playing like a pro on the international stage, countering Trump tariffs and reducing his leverage with every FTA and defence deal. America is the ultimate loser in this!"

The development comes at a time when US tariffs as high as 50 per cent have disrupted global trade. For India, the FTA offers an opportunity to reduce dependence on China, expand exports to Europe and mitigate the impact of Trump's tariff tantrums. 

The FTA is expected to help Indian exporters diversify their shipments as tariff or import duties would either be reduced or eliminated. At present, India's textile exports to the EU face tariffs anywhere between 12 and 16 per cent. 

It is also likely to benefit key industries like technology, pharmaceuticals, automobiles, and textiles. 

Indian exports, including from labour-intensive sectors (garments, leather, pharmaceuticals, steel, petroleum products, and electrical machinery), are expected to become more competitive in the EU.

Key services exports include business services, telecommunication and IT, and transportation. As of 2023-24, India's alcohol exports to the EU included wines, blended whiskeys, vodka, brandy, and liqueurs. 

India's main imports from the EU are machinery, computers (including turbojets), electronics (including mobile phone parts and integrated circuits), aircraft, medical devices, scientific instruments, rough diamonds, organic chemicals, plastics, iron and steel, cars, and auto parts.

Services import comprises intellectual property services, telecommunication and IT. Key alcohol imports included wines, blended whiskeys, brandy, gin, tequila, vodka, and liqueurs.