What's Wrong with the EU-India Trade Deal?

Peter Zeihan 5 min

There is no free trade on a transcontinental or trans-oceanic basis unless there's freedom of the seas and global rule of law. Countries must develop an internal regional structure to support trade rather than seeking global deals.

Chapters

  1. 0:00

    The Illusion of Scale

    Clarifies the actual size of the trade deal and highlights the EU's protectionist nature. Explains how entrenched interests in agriculture and industry block meaningful trade.

  2. 3:13

    Enforcement Deficit

    Argues that free trade requires global rule of law which only one nation can enforce.

Key points

  • 0:00

    One-third of world trade is an exaggeration when adding India to the EU.

  • 0:00

    The EU prioritizes subsidizing farmers over free market access.

  • 0:00

    The EU struggles to sign deals because it pushes unwanted products onto partners.

  • 0:00

    The Mercosur deal remains stalled due to mutual protectionism.

  • 1:54

    India is even more protectionist than the EU regarding industrial sectors.

  • 1:54

    The new deal reduces tariffs but ignores non-tariff barriers.

  • 1:54

    India can use national security exemptions to block trade arbitrarily.

  • 3:13

    Meaningful free trade requires freedom of the seas and global rule of law.

  • 3:49

    No nation can currently enforce the global rule of law needed for such deals.

  • 3:49

    The US Navy lacks the capacity to patrol globally anymore.

  • 3:49

    Countries must develop internal regional structures rather than seeking global trade.

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