'US felt they were left behind': Canadian analyst hints India-EU FTA made Trump feel sidelined

Canadian trade specialist and government affairs lawyer Jacques Shore claimed on Monday that the historic India-EU trade deal, signed on January 27, triggered the 'fear of missing out' in US President Donald Trump, prompting him to call Prime Minister Narendra Modi. 

Dubbed as the "mother of all trade deals", it aims to eliminate or reduce tariffs on more than 90 per cent of traded goods. The India-EU FTA establishes a free trade zone of 2 billion people, representing nearly 25 per cent of global GDP.

"When you look at the 1.5 billion in India, and almost half you look at 500 million in Europe. You look at that and you say it's quite incredible that I think the United States, which felt maybe they were somewhat left behind and recognize this is a moment for them to actually address the trade issue which is obviously an important one for them but what I find remarkable is we are seeing yet again another very very strong example of using trade as a leverage," Shore said in an interview with CTV News. 

Shore said that he essentially sees the recent announcement by Trump as a "tool to shape results", adding he hopes that this step by Trump ensures that there is a commitment from India that it would not purchase Russian energy and oil. 

"I think the incredible step taken by the President to essentially work out a deal that ensures that there's a commitment first of all that India will not purchase its oil, its energy requirements from Russia, is very significant. Then again, with that comes a commitment to buy from the United States over $500 billion worth of technology, agriculture, coal, and more, and energy. And there's even an interesting spot in there where there's a reference to Venezuela."

He further described the "strategic play" by Trump in the entire situation.

"So you really see, I think a very strategic play, by the president of the United States, and that's actually before we head, our prime minister is going to be heading to India to actually work at a trade deal." 

When asked about the impact of India reducing Russian oil purchases, the analyst said that there is a real frustration because of the fact that Trump has been effectively soft on Putin. He called Russian oil "an instrument to finance the war in Ukraine". 

"So when you look at that as basically having a requirement for Putin to suddenly have to look to other avenues where it's more expensive to ship and distribute that oil, find other smaller players. It's not the same. And I think that this is actually a very smart move if that can really move the needle to basically say the gig is up. You're not going to be able to finance the war that you have basically waged on Ukraine."