In an interview with India Today Global, Kaja Kallas argues that Europe needs to diversify ties and rely on stable, rule-based trade agreements in a more unpredictable global order, linking the accelerated India-EU trade pact to tariff weaponization under President Trump.
Europe’s Push for Stable Trade Partnerships
The European Union’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas, candidly discussed the changing geopolitical environment that has expedited the conclusion of the India-EU free trade agreement in an exclusive interview with India Today Global. Kallas emphasized the necessity for Europe to diversify its economic partnerships in the face of growing global uncertainty and characterized the agreement as mutually beneficial.
Executive Editor Geeta Mohan of India Today Global led the discussion, which covered a wide range of urgent topics, from the Trump administration’s weaponization of tariffs to Europe’s vulnerabilities on its eastern flank.
Geopolitical Shifts and the India-EU Free Trade Agreement
🌍 India–EU Trade Pact: Key Highlights
- Agreement Type: Free Trade Agreement (FTA)
- Driving Factor: Global uncertainty and tariff weaponization
- EU Position: Stable and predictable trade partner
- Strategic Goal: Diversification of economic alliances
- Mutual Benefit: Balanced growth for India and Europe
While recognizing the complexity of transatlantic relations under President Trump’s second term, Kallas presented the EU as a “steady and predictable partner” in an increasingly unstable globe.
Tariff Weaponization and Global Trade Uncertainty
Let us start by asking when the trade agreement or tariffs will go into effect.
Kaja Kallas: Since both of us are democracies and these agreements must go through certain processes, it naturally takes some time. However, since it is advantageous to both sides, we still hope that it proceeds quickly.
Impact of Trump-Era Trade Policies
⚠️ Tariffs, Trade & Global Reactions
- Key Concern: Weaponization of tariffs by the US
- EU Response: Strengthening rule-based trade systems
- India-EU Timing: Accelerated due to global instability
- US Reaction: Sharp response after Davos announcement
- Broader Debate: Trade security vs geopolitical pressure
Q: A lot of people are discussing the timing. We are witnessing a significant breakthrough following years of tension in relations between India and the European Union. Is the quicker pace of the deal’s conclusion due to Trump’s weaponization of tariffs?
Kaja Kallas: The geopolitical environment undoubtedly aids in this. It is evident that we have had significant allies in the past, but the current situation requires us to form alliances with nations who support free trade. Furthermore, it is in both of our interests to diversify our trading portfolios.
US Reaction and Transatlantic Tensions
Interestingly, the United States of America reacted sharply when the president herself made the announcement at Davos. Europe is indirectly financing the conflict between Russia and Ukraine, according to Treasury Secretary Scott Bessent. What do you think?
Kaja Kallas: It goes without saying that nations like the United States dislike it when we diversify our trade portfolios. That is quite evident. However, once more, we are concentrating on the good. What more can we do to promote trade across various regions? Naturally, we want the conflict in Ukraine to end, which is why we have imposed sanctions on the Russian shadow fleet on several fronts. This remains unchanged. We have held same conversations with our Indian counterparts since we both want the war to end.
Trust, Trade Diversification and the Ukraine Conflict
Q: Speaking of trustworthy partners and dependability, you have stated that Russia is untrustworthy. However, are you able to put your trust in America, your once-all-time friend? One example is Greenland. What comes next? Is the EU aware of Greenland and the NATO chief’s discussions with Trump? What is going on here?
Kaja Kallas: The geopolitical environment is undoubtedly complex. You know, transatlantic relations were suffering as a result of our conversations on Greenland. I can tell you that with great clarity. However, we are now concentrating on subjects where we may form alliances with other nations, including the United States, in order to strengthen our bonds.
Europe’s Vulnerabilities and Strategic Awareness
Whether it is the eastern flank with Russia or, more recently, America, is Europe more vulnerable than it has ever been?
Kaja Kallas: I do not think so since, in the past, we were not really aware of our reliance on nations like China for technology or Russia for energy. We now have a clear understanding of our current situation and our vulnerabilities.
As a result, we are working to strengthen our defense, diversify our trade portfolios, eliminate Russian gas and oil, and strengthen our defense and security alliances with nations like India.
EU Position on Terrorism and Global Conflicts
Q: While the European Union acknowledged terrorism, the Red Fort terror incident, and the Pahalgam terror attack, is it also acknowledging that cross-border terrorism is a major worry for India?
Kaja Kallas: We talked about combating terrorism, and we both agree that it is a worldwide issue that requires international cooperation. The globe is currently facing a number of issues, especially with regard to conflicts.
Europe’s Role in Israel-Palestine and Gaza
Regarding the conflict between Russia and Ukraine, there has been a great deal of indignation. When it comes to Israel-Palestine, we see far less of it in Europe.
Kaja Kallas: This is untrue. Who is the largest donor to the Palestinians? I am not sure why this information is making the rounds. It is Europe. We have made humanitarian contributions. We have been the two-state solution’s strongest advocates. Additionally, we are the Palestinian Authority’s strongest advocates for giving the Palestinians a voice over their territory.
Since Palestinian police must eventually disarm Hamas and seize control of the region, we are now working on a peace plan for Gaza that includes assistance with training Palestinian police. Thus, we have played a significant role in putting an end to both the conflict and the humanitarian crisis.
Peacekeeping and Border Stability Efforts
And participating in the peace along the border?
Kaja Kallas: In the end, the United Nations Security Council resolution was intended to be for Gaza and to have a time restriction of 2027, which further demonstrated the Palestinians’ participation in the board of peace. The current state of the border peace charter is far more expansive than that.
In accordance with the UN Security Council resolution, we would like to see it restricted to Gaza. Then, of course, in order to create a lasting peace in the Middle East, we are prepared to collaborate with all the organizations—that is, border peace, the international stabilization force, etc.
Unpredictability Under President Trump
Q: Let me ask you one last question before returning to President Trump. Has he introduced a great deal of uncertainty and volatility, and if so, how will the European Union respond?
Kaja Kallas: It is obvious that the word of the day is unpredictability. I believe that during the past year, we have learned to anticipate a great deal of uncertainty. However, the European Union actually uses the word predictability to refute that. Our vulnerability has been that. We have, after all, frequently been the dull, dependable, and steady companion.
However, if I travel the world, this is truly turning into a strength. India and other nations are observing us because we are a reliable ally. It may take some time to reach a consensus, but once we do, we honor our commitments and adhere to the terms of the agreement.
Frequently asked questions
1. Why did the trade agreement between India and the EU go more quickly than anticipated?
Global geopolitical changes, particularly tariff uncertainty under President Trump, hastened the pact by forcing the EU to diversify its trading partners and rely on stable, rule-based economies like India.
2. Did the accord directly result from Trump’s tariff policies?
Indeed. Kaja Kallas said that the “weaponization of tariffs” forced Europe to reconsider its reliance on trade and look for allies who promote stable, free trade.
3. When will the trade agreement between India and the EU go into effect?
Although both India and the EU want to proceed swiftly, implementation will take some time because both must finish democratic approval procedures.
4. In the current global order, how does the EU see its relationship with India?
Particularly as Europe strives to lessen its reliance on China and Russia, the EU views India as a crucial strategic partner for commerce, security, and defense.
5. How is the EU handling the unpredictability and instability in the world?
By diversifying trade, bolstering defense, lowering reliance on energy, and upholding long-term promises, the EU is concentrating on becoming a dependable and predictable partner.
Conclusion
The comments made by Kaja Kallas highlight the fact that the trade breakthrough between India and the EU is not only economically significant but also very strategic. The EU is redefining itself as a reliable, rules-based partner in a world characterized by instability, tariff wars, and shifting alliances.
The deal gives India access to more international influence, economic, and security cooperation. The agreement is part of a larger realignment in which diversity, predictability, and trust are emerging as the new cornerstones of global alliances.
Disclaimer
Disclaimer: This content is based on publicly available statements and interviews and is intended for informational purposes only. It does not constitute legal, financial, or political advice.
