India and the European Union Seal a Historic Free Trade Agreement

On January 27, the European Union (EU) concluded a historic free trade agreement with India, marking a significant step in diversifying its trade relations. This agreement comes as the EU faces challenges, particularly from the United States under Donald Trump's administration, which has imposed tariffs of 15% on EU goods, with the threat of increases if the EU does not comply with U.S. interests in Greenland. The EU's reliance on the dollar and its lack of a strong strategic autonomy have made it difficult to break free from Washington's influence.

The deal with India is presented by the Commission as 'the mother of all agreements' amid a new strategic agenda aimed at the Indo-Pacific region. This agenda is spearheaded by Kaja Kallas, the foreign affairs representative, and Valdis Dombrovskis, the commissioner for trade and economic security.

Since Trump returned to power a year ago, the EU has hinted at the possibility of strengthening ties with China, previously labeled as a 'systemic rival.' EU leaders are increasing their visits to China while continuing to criticize the state's control over its economic system.