EU-India Free Trade Agreement

The Dawn of a Post-American Trade Order The recent finalization of the EU-India Free Trade Agreement marks a seismic shift in global commerce. After two decades of stagnant negotiations, this accord signals more than just reduced tariffs; it represents a strategic pivot. By phasing out duties on the vast majority of goods, the European Union and India are effectively building a bypass around the traditional financial and regulatory gravity of the United States. Strategic Hedging Against US Volatility Global trade dynamics no longer center exclusively on Washington. The timing of this deal—landing amid Donald Trump’s renewed tariff threats and diplomatic friction over Greenland—reveals a calculated hedging strategy by America’s long-standing allies. When India faces US tariffs as high as 50% on critical exports, the incentive to seek alternative markets becomes an existential necessity rather than a mere diplomatic preference. Economic Projections and Export Velocity The mathematical implications are staggering. Projections suggest European exports to the Indian market will double within six years. This surge in trade volume demonstrates how regional blocks are prioritizing stability and predictable market access over the increasingly erratic bilateralism characterized by current US trade policy. The "mother of all deals" proves that middle powers and established unions are finding their own rhythm in a multipolar world. Bypassing the Washington Consensus As Liz Hoffman notes, nations are learning they can go around Washington rather than knuckling under to protectionist demands. This new pattern of trade alliances suggests that the weaponization of market access by the United States has reached a point of diminishing returns. Allies are no longer waiting for a seat at the American table; they are building their own. This trend likely precedes a broader restructuring of global supply chains that diminishes American influence in the long term.