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The trade deal between India and EU may be finalized on January 27.

Trade deals are becoming such a game of backgammon, in which one of your moves may cause loss to your competitor, but a third person may definitely benefit. There is a reason for that too. This is like a war. In war the enemy of the enemy is a friend. The US President's Greenland Tariff has brought the EU and Trump face to face. This is the reason why India is looking at this situation in its favor. There is a reason for that too. Even if there is a delay in the US trade deal, if a deal is made with the group of 27 developed countries of the world, then India's troubles will go away to a great extent. In such a situation, the talks between both the sides have now reached the final stage. The news is that Europe can make a big trade deal with India. This means that the effect of teaching America a lesson and increasing closeness with India can be seen in America also.

EU and Trump's trade war

The fear of a tariff war brewing between America and the European Union may boost Indian exports to the 27-nation European Union. Both sides are in the final stages of long ongoing negotiations for a proposed Free Trade Agreement (FTA). Trade experts say that after America's aggressive stance on European exports, the European Union has additional incentive to strengthen trade relations with other countries including India.

On January 17, US President Donald Trump announced a 10 percent tariff on imports from Denmark, Norway, Sweden, France, Germany, Britain, Netherlands and Finland. Trump explicitly linked the tariffs to Greenland after these countries supported Denmark's rejection of the US occupation of Greenland. The US tariff will be effective from February 1 and will increase to 25 percent on June 1. This will continue until the US achieves what Trump calls a “full purchase of Greenland”.

India EU deal to be filed on January 27

Sanjay Jain, MD of readymade garments exporter TT Limited, said in the ET report that the European Union can complete the operational aspect of this agreement as soon as possible. This can not only help us get a better deal but also speed up the process of rectification. India and the EU are expected to announce the conclusion of free trade agreement (FTA) negotiations during the summit to be held in the capital on January 27. The announcement will coincide with the state visit of European Council President Antonio Costa and European Commission President Ursula von der Leyen from January 25 to 27. Both the leaders will also be the chief guests of the Republic Day celebrations in Delhi on 26 January.

India will benefit

One official said there could be an opportunity for India because it is a stable trading partner in a world full of instability. Citing the example of China, he said amid trade uncertainty between Washington and Beijing, there has been an increase in exports to India. It is clear that America's trade war with China and Europe can prove to be a profitable deal for India. With this, India can compensate Europe for its losses from America. However, India has also signed agreements with the countries of the Middle East. Due to which India's loss due to American tariffs has reduced significantly. Now it remains to be seen what kind of deal is made between India and EU.