‘TRADE WARS BENEFIT NO ONE’ – ANTONIO TAJANI

UPSC Relevance

• GS-2: International Relations – India-EU Relations, Trade Diplomacy
• GS-3: Economy – Bilateral Trade Agreements, Tariffs, and Protectionism
• Essay: Globalization, Geopolitics, and Trade Cooperation

Key Points

1. Position on U.S. Tariff Pause

• Tajani praised President Trump’s 90-day tariff suspension, advocating for similar EU-U.S. negotiations.
• He emphasized that zero tariffs would enhance global commerce and business confidence.

2. EU-India Bilateral Trade and Investment Agreement (BTIA)

• Both parties aim to finalize the BTIA in 2025, with stronger political commitment than in past efforts.
• Challenges include India’s restrictions on market access, particularly for wine, spirits, agriculture, and dairy.
• Tajani stressed the need for terms customized to the EU, distinct from U.S.-India agreements.

3. Critique of Trump’s Approach

• Tajani criticized the U.S. for not consulting the EU on issues like Greenland.
• He called for transparent U.S.-EU dialogue to avoid further transatlantic tensions.

4. India-Middle East-Europe Corridor (IMEC)

• Geopolitical instability, especially involving Israel, has delayed IMEC progress.
• Italy proposes advancing IMEC through Trieste Port under the EU’s Global Gateway initiative, as an alternative to China’s “Cotton Road.”

Analysis and Path Forward

• Italy and the EU view India as a critical partner for economic collaboration.
• Stability in West Asia is vital for unlocking IMEC’s potential.
• A successful EU-India BTIA must balance market sensitivities while fostering trust and long-term engagement.
• Strengthening multilateralism and equitable trade principles is essential amid growing protectionism.