Contemporary Foreign Policy: EU-US Relations and US-India Relations

This document discusses the complicated relations between the EU and US, focusing on the disagreement and trade wars. It also explores the strategic partnership between the US and India in the Indo-Pacific region, highlighting the aim to counterbalance China's influence. The implications of tariffs and trade wars on the economy and the future of these relationships are also examined.

Contemporary foreign
policy

TABLE OF CONTENTS
1..................................................................................................................................................3
2..................................................................................................................................................4
REFERENCES...........................................................................................................................7

1.
The relations among the EU and US is always been complicated along with various
disagreement. This pairing was instituted to do their best in terms of representing the
disparate views of the twenty-eight member states which is in relation to trade, terrorism etc.
and fostering the EU-US cooperation is considered as a never ending practice. For the very
first time, the president of US, Mr. Donald Trump has expressed openly about the
disagreement for the European projects (Jungmittag and Welfens, 2020). As per the views of
the Trump there is no benefit or value America is having in relation to the EU and along with
that, he does not appreciate the historical circumstances as well. It stated that EU has been
formed for taking advantage of US and no body ahs treated US such worse than the what EU
has done.
In a recent meeting with the European Commission President at the WEF and both
the parties had a great talk. The President Trump stated that EU is having no other option but
to negotiate the new trade deal. Among with that, he further threatened EU to impose tariffs
on the European cars and other things as well. Trump government was already exacerbating
this relationship with EU and surprisingly the administration announced for the ban on the
travellers coming from the EU but not Britain which resulted into speculating the political
motivation behind this move (Smith and Youngs, 2018). Along with that, Ushas further
imposed tariffs on the plane maker Airbus which has resulted into increasing the cost for the
airlines which are now struggling with the huge amount of losses. The travel bans which was
imposed by US was for helping to stop the spread of the virus across various parts of Europe
which involves Italy, Germany and France. The trade war between US and EU is very
crucial. The president has also turned his rough gesture against the EU despite concentrating
on the Chinese tariff. But the trump administration is due to decide whether it is imposing
duties on one of the most important industry of Europe or not which is automobile industry.
Currently, the tariffs on the European steel and aluminium is already been imposed
which can cause a bloc of duties of nearly twenty five percent on the 2.8 bn US products in
2018. The import and export of the goods and services between EU and Us bilateral trade has
exceeded the trade between the US and China by approximately 70% (Barbé and Morillas,
2019). As of now, both the economies are not in the state to impose trade war at this stage
while there is already a war between US and China which will affect the economic health of
both the countries and if there is implication of increase in tariffs among US and EU then this
result into further slowing down of the economy. This will cause increase in the price of the

products and services which will put burden on the end consumers, reducing the size of the
market, weakening of the MNCs. Along with that there is an omission of significant reference
to EU while Tillerson was putting emphasis on the shared principles. Tillerson dd not
mentioned anything about the multi-billion-dollar trade relation between the US and EU long
heralded as the cornerstone for the trans-Atlantic relationship. Also, after imposing tariff on
steel and aluminium, Trump argued that Europe was waiting a special carve out and in
addition to it, the Iran nuclear deal which was one of the crucial accomplishment of US-EU
cooperation, President Trump pulled the US got of the deal in 2018.
Thus, the US policy on implementing tariffs on the EU products and services will
result into a huge shift and changes in the existing relationship among the two nations. Trump
also stated that there is also a potential negotiation with the PM of UK Boris Johnson in
regards to the bilateral trade which might be set after UK leaves EU on January 31. This can
only be undertaken once the transition is done (Rahajeng, 2020). All these factors arise
question on the current existing relations between EU and US and how the decision of Trump
of imposing tariff will affect the economy of European Union. For which reason, it become
important for the European Union to demand an answer from the Donald Trump as his action
will result into a huge shift in the operation of the economic activities of the EU member
countries.
2.
The Indian ocean is the focus point of the US foreign policy with is involved in the
significant arrangement with the South Asian nations. The significant change is referred to as
the Indo pacific which involves reshaping the interests and the interdependence among US
and India and other South Asian nations. The major beneficial of the new US foreign policy
is India and the Sri Lanka in the Indian Ocean indirectly makes itself important for the
purpose of advancing the India’s strategic interest (Calabrese, 2020). The foreign policies of
US are influenced by the political situations in the countries. From the year 2000, there has a
been a significant amount being put into for creating a strong engagement with the South
Asian countries such as India. The former president Clinton the agreement between India and
US in regard to the civil Nuclear agreement and the former president Obama and the current
President Donald Trump supported the bilateral trade among both the nations. Under the
existing government of Trump, the new foreign policy of United States is also revolving
around India in order to counter balance the impact of other existing powers in the region.

The rise in the interdependencies of both the nations has resulted into finding a
common interest. The main aim of both the nation is to counterbalance the attempt put by
China in respect to flexing itself in the Indo-pacific region (Beeson, 2020). US is the 5th
biggest investor in India which is growing at a steady rate y-o-y basis. In the previous year
2019, US made an investment of nearly $45 bn US. The bilateral relation among the nations
have developed into the global strategic partnership which is built on the democratic values
along with the commercial interest. The increasing leadership role of India within the region
and in the different forums, for instance, ASEAN, SAARC which aims at further
strengthening the partnership and protecting and preserving the common interest of both the
nations. The Indo Pacific is designated during the Trump’s presidency but it was circulated at
the time of Obama presidency. This is designated to show that both the economy is very
important to the global economy along with the interstate politics. United States thinks of the
coherent theatre in respect to the global operations revolving around the Pacific Ocean and
the Indian Ocean among with the strategic waterways through the Straits of Malacca under
which most of the ships of the world passes. This can be considered as the joined strategy of
US and India for the purpose of countering the threat of China.
The US diplomacy along with the Indian subcontinent and its neighbours on the last
7 decades has changed completely. The nature of United States involvement with the South
Asian nations has also changed as the time changes and with it the national interest of US has
also gone under the various stages of evolution. The expectations of the US foreign policy
from these countries mainly comprises of the rising leadership along with eth management
and the establishment of structured and organized rules and laws and the free market
economy in that region (Wei, 2020). The relation between US and India is very broad and
involves multiple sectors. Through this policy, US keeps on promoting economic freedom
across different sectors such as products, services along with investment. It also focusses on
meeting up with the issues such as China 5G push and the China’s Belt and Road initiative
which might pose a risk to the United nation’s interest and the national defence.
On the very first weekday of Trump in the office, he announced withdrawal from the
TPP which counted as one of his promise done during the campaign and therefore,
underpinning his vision for outreaching the economic vision in order to compete with the
Chinese initiatives. This Indo-pacific is used repeatedly in order to highlight the vision of
President Donald Trump of a free and open Indo-Pacific which is mainly preserved and
protected by the two strong bodies or pillars which are the US and India. Therefore, it
becomes very clear why the US foreign policy revolves around the Indo Pacific (Colby and

Mitchell, 2020). Thus, Indo Pacific in a simple terms highlights the vision of US president
and thus, policy is being formulated and implemented taking into account its impact n eth
existing relationship with the South Asian nations along with the determining the influence of
it on the future strategic interest of the nation so that everything goes as per the plan leading
to strengthening the interest and prosperity for each nation.

REFERENCES
Books and Journals
Barbé, E., & Morillas, P. (2019). The EU global strategy: the dynamics of a more politicized
and politically integrated foreign policy. Cambridge Review of International
Affairs. 32(6). 753-770.
Beeson, M. (2020). Donald Trump and post-pivot Asia: The implications of a “transactional”
approach to foreign policy. Asian Studies Review. 44(1). 10-27.
Calabrese, J. (2020). ASSURING A FREE AND OPEN INDO-PACIFIC–REBALANCING
THE US APPROACH. Asian Affairs. 1-21.
Colby, E. A., & Mitchell, A. W. (2020). The Age of Great-Power Competition: How the
Trump Administration Refashioned American Strategy. Foreign Aff.. 99. 118.
Jungmittag, A., & Welfens, P. J. (2020). EU-US trade post-trump perspectives: TTIP aspects
related to foreign direct investment and innovation. International Economics and
Economic Policy. 17(1). 259-294.
Rahajeng, L. P. (2020). Foreign Policy in the Trump Era: Populist Rhetoric and the United
States Membership in NATO. Global Local Interactions: Journal of International
Relations. 1(2). 1-9.
Smith, M. H., & Youngs, R. (2018). The EU and the global order: Contingent liberalism. The
International Spectator. 53(1). 45-56.
Wei, L. (2020). Developmental peace in east Asia and its implications for the Indo-
Pacific. International Affairs. 96(1). 189-209.