What's Wrong with the EU-India Trade Deal? || Jan. 28, 2026
The EU and India have struck a trade deal, but it’s not the breakthrough it's being made out to be. Just because you sign a trade deal doesn't mean that integration magically appears.
Both sides of this deal are highly protectionist and have no interest in introducing new competition to their markets. This deal is fairly modest; some tariffs get lowered, but there are enough barriers in place for either side to block trade wherever they see fit.
One of the problems with global trade deals is that it only works if the oceans are free and the global rule of law is intact. The EU would be better off spending its time strengthening relations among regional nations, rather than looking far and wide.
Comments (35)
I’d sure rather my tax dollars went to subsidize farmers… than ultra-wealthy corporations and billionaires.
Are we all just chasing growth? I'm drawing a blank trying to recall what economics looks like if everybody just goes to work every day and no stock prices rise or fall...?
Well, most US americans having lived for longer than a few weeks in Europe are astonished about the fresh and healthy food for good prices. I wonder what the reason is... .
WTF is "Mercursor"?
Mark Dixon: Mercosur is the nickname for Mercado Común del Sur (Southern Common Market), a South American trade bloc uniting about 10 states.
Keep the EU clowns talking; at least then they aren't fucking with the US (as much)!
I have no idea why future America can't patrol the world's seas with drones and jets from nearby carriers ... what kind of enemies to trade are you expecting? Somali pirates? Chinese and Russian rowboats? THE FRENCH???
Haven't you been paying attention? It would be in the entire world's interest, including ours, to maintain the global status quo. Which is why the global oligarchs and their Republican minions have been trying to destroy it since its inception, and have forced the complicit majority to think we can no longer afford it. But some sort of stripped down version (not necessarily my modest proposal) could easily keep the sea lanes free of pests.
NZ has an offer on a FTD. It sounds / reads very one sided. Have you read anything about it Peter Ziehan? Ant thoughts?
Also interested.
I like that when Peter says, "mercosur" I'm hearing "Mercosaur" -- some kind of protectionist dinosaur species.
Such explanations are extremely helpful and clarifying. They are, to my knowledge, available nowhere else, certainly not with the frequency with which they are provided to us by Zeihan.
Maybe there is a good reason for tariffs. PZ, why don't you make this link when you are criticizing Trump about tariffs? The EU doesn't, maybe, impose tariffs but I believe it does impose VAT with the basis for the value equal to the import value. MI right? That and regulatory restrictions make it really hard to trade with the EU and puts domestic producers at a distinct disadvantage. I, personally, would be really interested in an AFTA to include all of the Western Hemisphere. In fact, why not an "American Federation"? That would be really nice but the hurdles there are immense. For one, there are at least three major languages to deal with, English, Spanish, and Portuguese. An AFTA would be a really good start, though.
The only reason for tariffs, is to cause kaos. There is no plan, no "good reason." Only the dispositional states of a grossly ignorant, real estate fraud. With Narcissistic Supply pathology.
Yes - lot's of protectionism in these countries... maybe they need to raise tariffs.
another day without acknowledging minnesota
actually there isn’t enough coverage
Thanks Peter! Great info. Them Europeans are some confused folks... Great bread, beer, and castles of course.
Don't forget the various hams and cheeses, too.
As globalization breaks down regionalization or regional trading blocs is the future of global trade.
So what's the real thread here? I think to make this trade "save", it's just the Gulf of Aden and the Red Sea, including the Suez Channel, that need to be protected. Of course, this is not nothing, and it's one of the most dangerous routes, but it's still not the whole world's routes that need to be protected. So do you implicitly say that the US (or its adversaries incl. shady terrorist and pirate groups) will threaten the ocean routes between the EU and India?
Depends on your definition of piracy for example, China fishing fleets inside the EEZ's with the transponder turned off. Somalia doesn't have a Navy unless you count pirates. Africa really can't do much about EU and China raping African fish stonks. Meanwhile, on Thai fishing boats the crew, all slaves, is catching cat food for Western toxoplasma sufferers. A place where everyone can do business. You can hide jumbo jets in the Indian ocean. Heck, you could even build an artifical reef. Who is the police? What police?
Simplistic view? Trade Balkanization meets Depopulation
What about the defense manufacturing deal?
Maybe it's wildly unpopular if you are a farmer, no wait there are hardly any real "farmers" left they are now huge agro companies sucking up all the EU subventions. It's not like they have lots of people employed they just use huge automated machines. So no tears from me. I will still go and by my food produced as locally as I can. Or from the mother in laws garden. India is an emerging economy with a good growth rate.
It’s the pinch points that matter. The EU has the Baltic and Mediterranean. The EU would do well to cultivate Iran for example. If the US Navy can’t ensure security, there are also not enough ships out there to shut down sea lanes. It’s in China’s interest to trade with the EU. Only South America presents a problem re the US Navy getting defensive. I don’t see any American president taking over the Med - that would be foolhardy given the size of the French and UK navy. So there’s that…
At least they have something on paper! Something American trade negotiators seem to neglect
US was negotiating a major trade deal with India but looks like trump derailed it.
I've been waiting for this one
If you're on the way to Cuba, I think Rubio is already bidding for King of Cuba, sorry. Enjoy the hike!
The Spanish, Portuguese, Dutch and British empires managed world trade without the US navy though... Is it not possible now because there's a larger volume or more modern pirates/ privateers?
DW, none of those imperial powers had to contest with sharks with friggin lazer beams on their heads…
Thanks for the video PZ 😁👍
Don't get on a boat ...
And hear I thought this relationship wouldn’t evolve simply because French cows refuse to give up cigarettes.