As global trade diplomacy intensifies, Former High Commissioner to the UK Jaimini Bhagwati has said the European Union offers India more stability and long-term reliability than the United States when it comes to trade partnerships.Speaking to CNBC-TV18, Bhagwati stressed that while the EU’s trade processes are slow, they are consistent and ultimately beneficial. “Europe is slow, but sure and steady,” he said, explaining how trade decisions in the EU go through multiple levels of approval—from the European Commission to each member country’s government and, in some cases, national parliaments. “There’s no way of shortening it. But I think Europe is a very stable and reliable partner.”
His remarks come at a time when the EU and India are working on an interim trade deal, expected to be rolled out in phases. The European Union, without the UK, has a population of around 450 million—compared to the US’s 350 million—and both regions have similar per capita income levels, making the EU an important economic bloc for India to engage with.
Bhagwati acknowledged that trade negotiations with Europe are lengthy and complicated but maintained that the payoff is worth the wait.In contrast, Bhagwati described the United States as a more unpredictable partner, especially under President Donald Trump. “We have to tread with caution, because President Trump is not known to be very consistent in his speech or actions,” he said. As an example, he cited Trump’s threat to impose a 25% tariff on Apple phones made in India, calling it a sign of “turbulence and uncertainty.”
His remarks come at a time when the EU and India are working on an interim trade deal, expected to be rolled out in phases. The European Union, without the UK, has a population of around 450 million—compared to the US’s 350 million—and both regions have similar per capita income levels, making the EU an important economic bloc for India to engage with.
Bhagwati acknowledged that trade negotiations with Europe are lengthy and complicated but maintained that the payoff is worth the wait.In contrast, Bhagwati described the United States as a more unpredictable partner, especially under President Donald Trump. “We have to tread with caution, because President Trump is not known to be very consistent in his speech or actions,” he said. As an example, he cited Trump’s threat to impose a 25% tariff on Apple phones made in India, calling it a sign of “turbulence and uncertainty.”
India’s goods trade with the US stands at roughly $90 billion in exports and $40 billion in imports, while exports to Europe are about €75 billion against €52 billion in imports. Despite these numbers, Bhagwati noted that India’s trade volumes are still relatively modest when compared to countries like Vietnam. “We want to increase trade, both in goods and services,” he said.
He also stressed the importance of India being agile in a rapidly shifting global trade environment. “There’s a lot of turbulence here, so one needs to just take a step back to understand what’s going on,” Bhagwati said, adding that the global context demands careful and calibrated diplomacy from New Delhi.
Watch accompanying video for entire conversation.
