Not-So-Free Trade Tuesday: The ‘Mother of All Trade Deals’—20 Years in the Making

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and not so free trade Tuesday. Again, put this into perspective, 20 years. It’s been 20 years in the making. it took 20 years of negotiations and the European Union and India, they’re calling it the mother of all trade deals. They’re calling it that. Yeah, needling Trump is what they’re doing here.

Leaders of the European Union and India announced a trade agreement. Again, get your arms around two decades. 2006. Yeah. Again, they’re saying this deal is a little more urgent because of Trump and his policies. While the final free trade agreement must still clear legal scrutiny in Brussels.

and New Delhi, the deal brings together the world’s largest economic bloc and India, the fastest growing major economy at a time when the United States is seen as a less reliable economic partner, and China is flooding the world with inexpensive goods. Pact includes an agreement to slash Indian tariffs on European cars to as low as 10%. Again,

Europe’s going to have to start making some less expensive cars. Let’s just be honest here. I think the cheapest European car is the Fiat 500, if I’m not mistaken. That thing, I think, runs about 17,000 euros. Again, you’ve got to take a look at what the average price is. But again, it’s a growing economy. And hopefully, it’ll work out well for them down the road. They’re ready. Think about 110 %

tariff right now on European cars. Basically said, and this is from Ursula von der Leyen saying that they created a free trade zone of 2 billion people with both sides set to benefit. Again, I haven’t seen all of the nuances of this deal. I’m sure there’s going to be some issues when it comes to food. That’s a big thing.

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with the European farmers and also a big thing with the Europeans as far as quality is concerned. we basically here we’ll get these eliminates tariffs on 90 % of goods trade between the EU and India set to double EU goods exports to India by 2032 India has always had a very protectionist economy. Tariffs on cars from EU India cut from 110 % 10 % tariffs on wines.

from the EU to India cut from 150 % to 20 to 30%. Tariffs on jewelry and textiles from India to the EU cut to 0%. That’s interesting. Again, look at certain countries in Europe, the made in blank label holds some weight without a doubt. I know this.

from being in there. You’re, know, in an Italian, you know, again, it’s made in Italy. It’s made in Italy. I go in other shops. Yeah, it might have been designed in Italy, but it was made somewhere else. We’re going to see how that works out. Tariffs on furniture, chemicals, leather and metals from India to the EU cut to zero percent. Again, looking for ways to diversify away from

the United States. Meanwhile, meanwhile, back here in the United States. Trump is is going after going after South Korea, increasing tariffs on South Korea because their legislature has failed to ratify the deal that they struck. What was it back in July of this past summer?

I don’t know if this has anything to do with that nonsense that they were touting that they’re going to pay the United States $350 billion for lowering tariffs. I quite frankly, I don’t see that ever flying. I really don’t. I don’t see the South Korean government saying here you go, Mr. Trump, here’s $350 billion. Also part of that deal too that the administration touted was that South Korean companies and businessmen will exceed

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$600 billion in investment in the United States. Again, like I told you back then, that’s a checks in the mail type of deal. How will South Korea respond? I don’t know. This was most certainly see the pants type of stuff because the South Korean and American trade envoys met over in Davos and everything was fine at that point in time. So who knows who knows if

from this is a response or pushback in regards to this mother of all deals between India and the EU. And again, I’m not buying the entire thing. You got to get this to fly. You got to get this to fly within the European Union. You got to look within the nuances. got all these different countries that have to agree upon this. It has to be unanimous. You’ve got certain countries right now. got farmers striking, putting tractors, blocking roads because of various different things due to trade.

So we shall see where that ends up. But I guess the, the 10,000 pound gorilla in the room still, and I’m almost, you know, shame on the Supreme court for, you know, not actually finishing and doing your job, knowing that this whole tariff case is that important that they can’t figure it out. I mean, I, know, at this point, I release something. I don’t care. You’re for it against it, whatever it may be.

Allow for a little certainty to seep in so we can see where we’re going moving forward on the issues of trade. Watchdog on wallstreet.com.