European Union trade pact with India marks a significant shift away from coercion and towards cooperation, according to a new approach by European Commission President Ursula von der Leyen. The agreement, seen as the "mother of all deals", provides for €4bn (£3.5bn) in tariff reductions, but more importantly, resets the terms of economic cooperation between two major trading partners.
This move can be contrasted with the previous US approach under Donald Trump, where trade was used as a tool of economic and political pressure. The EU's response is a deliberate effort to avoid coercion and instead treat trade as a means of sharing growth without demanding submission.
The EU's deals with India and Vietnam are part of a broader strategy to deepen trade while maintaining geopolitical room for maneuver. For India, the deal offers unprecedented access to European markets, particularly in vehicle imports, while protecting its domestic strategy. Europe sees significant exports to India doubling by 2032, largely driven by Indian textile exports.
India has also gained access to advanced European technologies through the deal. Meanwhile, Vietnam will benefit from increased trade with Europe without being forced to choose sides over its trading relationship with Beijing.
The EU's approach echoes that of Canadian Prime Minister Mark Carney, who argued that middle powers can build resilience through interdependence without surrendering autonomy. This is a nod to history, where wealthy countries grew by protection and strategic trade before insisting that poorer nations prosper solely through openness.
The European Union's new trade policy acknowledges the need for policy space in development, which has been lacking in past arrangements that denied it. By providing capital goods, standards, and demand, while also respecting selective protection in India, Europe is taking a more realistic approach to its Asian trade partnerships.
In contrast, Britain's tentative rapprochement with China appears shallow compared to the EU's deals with Vietnam and India. The new UK-China relationship lacks transformative depth, whereas the EU's moves have significant implications for the region's development paths.
Ultimately, the EU's shift towards cooperation in trade marks a significant departure from the previous era of coercion and one-upmanship. By embracing interdependence without submission, Europe is taking a crucial step towards building resilience and promoting growth in its Asian partnerships.
This move can be contrasted with the previous US approach under Donald Trump, where trade was used as a tool of economic and political pressure. The EU's response is a deliberate effort to avoid coercion and instead treat trade as a means of sharing growth without demanding submission.
The EU's deals with India and Vietnam are part of a broader strategy to deepen trade while maintaining geopolitical room for maneuver. For India, the deal offers unprecedented access to European markets, particularly in vehicle imports, while protecting its domestic strategy. Europe sees significant exports to India doubling by 2032, largely driven by Indian textile exports.
India has also gained access to advanced European technologies through the deal. Meanwhile, Vietnam will benefit from increased trade with Europe without being forced to choose sides over its trading relationship with Beijing.
The EU's approach echoes that of Canadian Prime Minister Mark Carney, who argued that middle powers can build resilience through interdependence without surrendering autonomy. This is a nod to history, where wealthy countries grew by protection and strategic trade before insisting that poorer nations prosper solely through openness.
The European Union's new trade policy acknowledges the need for policy space in development, which has been lacking in past arrangements that denied it. By providing capital goods, standards, and demand, while also respecting selective protection in India, Europe is taking a more realistic approach to its Asian trade partnerships.
In contrast, Britain's tentative rapprochement with China appears shallow compared to the EU's deals with Vietnam and India. The new UK-China relationship lacks transformative depth, whereas the EU's moves have significant implications for the region's development paths.
Ultimately, the EU's shift towards cooperation in trade marks a significant departure from the previous era of coercion and one-upmanship. By embracing interdependence without submission, Europe is taking a crucial step towards building resilience and promoting growth in its Asian partnerships.
! It's all about cooperation and mutual benefit, not coercion and one-upmanship 
. The €4bn tariff reduction is just the cherry on top, but it's the long-term benefits for both India and Europe that are really exciting 
. By respecting policy space in development, Europe is acknowledging that poorer nations need more than just open markets to prosper 
. It's a nod to history, where wealthy countries grew through strategic trade and protectionism before insisting on openness 
. Britain's tentative rapprochement with China seems shallow compared to the EU's moves 
. This new approach is a game-changer for Europe's Asian trade partnerships 
#EUTradePact #CooperationOverCoercion #SustainableGrowth #GlobalPartnerships
I think it's about time EU stepped up their game when it comes to trade. They're not just being all nice and friendly with India and Vietnam, but also setting some serious boundaries for China. It's like they're saying "we'll play by our own rules" 
instead of trying to force everyone into this one-way deal. And let's be real, EU can't compete with US in the trade war front anymore, so it's about time they focus on building their own relationships. 
Plus, this new approach shows that Europe is not just a bunch of bureaucrats stuck in the past, but actually trying to build something for the future. It's all about finding that sweet spot between cooperation and protection 
! It's like they're saying "hey, we don't have to be all aggressive and tough" 
. It's all about mutual benefit and not trying to strong-arm each other 
.
And what kind of advanced tech will India get its hands on? 
European Union's new trade policy with India and Vietnam is like, super optimistic 
... India just saw a massive heatwave that killed over 2k people, and EU's deal won't even help them deal with climate change 
... 1 in 5 Europeans are living below the poverty line 
anyway, i'm not sure why they had to make such a big deal about the €4bn tariff reductions, like who doesn't love a good discount? 
️
india and vietnam are gonna love this new deal 
doubling exports by 2032? that's some serious growth 
and getting access to european tech is a nice bonus 
the canadian way of thinking is spot on