‘Europe financing war against themselves’: India-EU ‘mother of all trade deals’ draws US ire - The Times of India

January 27, 2026 - 10:53

A landmark free trade agreement between India and the European Union, poised for announcement, has sparked a significant diplomatic dispute with the United States. US Treasury Secretary Scott Bessent launched a pointed critique of the impending deal, leveling a serious accusation against European partners.

Secretary Bessent contends that the agreement would effectively allow European nations to finance military actions against their own strategic interests. The criticism centers on the potential for the trade pact to facilitate transactions that circumvent international sanctions regimes. This, Bessent argues, could indirectly provide economic support to nations engaged in conflict, ultimately undermining collective Western security objectives.

The strong remarks from a senior US official cast a shadow over what has been termed the "mother of all trade deals." This agreement, years in the making, aims to dramatically increase market access and streamline commerce between the massive economies of India and the European bloc. Proponents argue it is a vital strategic partnership for fostering economic growth and supply chain diversification.

The public criticism from Washington introduces a new layer of complexity to the deal's finalization and implementation. It highlights the delicate balancing act facing nations as they pursue independent trade policies amidst broader geopolitical tensions and aligned sanctions frameworks. The EU and India have yet to issue formal public responses to the US treasury secretary's allegations.