In India Trade Talks „äußerst schwierig“, warnt EU -Verhandlungsführer – Euractiv
India trade talks ‘extremely difficult,’ EU negotiator warns
In India Trade Talks „äußerst schwierig“, warnt EU -Verhandlungsführer – Euractiv
India trade talks ‘extremely difficult,’ EU negotiator warns
7 Kommentare
Christophe Kiener, the European Commission’s chief negotiator for India, ripped the façade off New Delhi’s trade posturing, exposing it for what it truly is—an obstinate, self-serving machine that wants the spoils of global trade without any of the discipline that comes with it. India clutches onto its sky-high 150% tariffs like a life raft, shielding its domestic industries not out of strategic foresight, but out of sheer cowardice—an unwillingness to face the short-term pain of reform that could unlock long-term economic dominance. Negotiations in Brussels hit a predictable dead end: India refuses to play by the rules, balking at enforceable commitments, rejecting legally binding dispute settlement mechanisms, and offering laughable concessions on automobile imports. This isn’t pragmatism—it’s economic protectionism on steroids, designed to keep Indian oligarchs and bureaucrats fat and happy while blocking the very reforms that could transform the country into a true manufacturing powerhouse. By rejecting dispute settlement, New Delhi is sending a clear message: it has no intention of honoring any trade commitments when the moment comes to cash in. The next negotiation rounds will be more of the same—a high-stakes game of chicken where India expects the EU to blink first, while it continues to wrap its economy in red tape, ensuring that its rise remains stunted, its industries uncompetitive, and its aspirations to be a global manufacturing hub and trade leader nothing more than empty rhetoric.
Europe is making a strategic error negotiating any deal with India at all.
Unlike most societies that have a guiding political or economic philosophy, Indians have nothing resembling anything of that sort and make it up as they go along, take what they can, and don’t yield even when it’s rational. It’s petulance on a national level. And that works because india is a small player and no one really cares.
What Europe should do is wait for a few months for US reciprocal tariffs to kick in and start biting the Indian economy. April 2 the world will be in a global tariff war anyway. At that point introduce your own reciprocal tariffs on Indians, the economy will get choked from all ends.
For a change I side with EU on this one. India’s political class really does have intent it’s just the bureaucracy and the lobbyign that gets in the way. Atleast with trump’s actions they will actually get their head out their ass and be serious for a change.
And yet its EU that goes out there with a begging bowl every 6 months.
Negotiations were gonna be difficult no matter what. Both economies are very different. As long as CBAM exists India won’t budge, it’s unfair to expect that from a $2500 country, it will wipe out small businesses as India doesn’t have that kind of capital to dole out. CBAM is a protectionist measure from EU anyway. And automobile sector has reduced tariffs as long as it’s EVs. Most inputs have reduced taxes. Rest will have to wait, india knows how EU tries to manipulate, the amount of massive layoffs European companies are having is being watched. Position will be clear in a few months.
Most of the tariffs don’t help the industries — atleast in so far as nurturing more of them. Extremely hard to practice business in india. Lots of corruption, lots of unneeded bureaucracy. A lot of the tariffs essentially just keep the bigger guys in India complacent while the populace gets shitty products for more money than they would have otherwise given. Just look at cars in india. Most are pretty bad. The horsepower is atrocious.
The often talked about cheap oil from Russia goes to ambani, who sells it on to the customers who’d have bought it from Russia if sanctions weren’t in place. Indian populace doesn’t really benefit from this. This is the india looks after its own interests the Indian foreign minister was talking about.
Indian government looks after the oligarch’s interests. If they had indian interests in mind, they would never have taken such a huge blow to our credibility for the sake of making ambani richer
Tariffs are just a tax on consumers that benefit a few wealthy individuals. Economists have long shown that tariffs can have a beneficial impact, if used for a limited period in order to allow local industries to mature and be globally competitive. This is not new. That was the whole economic theory defended by Alexander Hamilton, when the US was a nascent country and needed temporary protection from the industrial powerhouse that was Britain. Tariffs are extremely hard to remove once they are set in place because companies can just pressure politicians to be benefit them instead of the general population who doesn’t understand tariffs, and actually think that it is a nationalistic measure.