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In the midst of negotiating a long-awaited trade deal with India, European Commissioner for Trade Maroš Šefčovič is facing a real headache: how to avoid a clash with Pakistan while resisting pressure from India to recognise the Indian origin of the long-grained, fragrant basmati rice.

“This is of course one of the issues which is on the list,” Šefčovič admitted on 12 September as he was back from a round of negotiation in New Delhi.

New discussions are taking place in Brussels this week, as both India and the European Union have set themselves the goal of reaching a trade deal before the end of the year, with the new tariff policy of the Trump administration putting both partners under pressure to build new trade ties.  

Of course, basmati rice will be among the issues discussed between Šefčovič and his Indian counterparts, as India wants its geographical indication (GI) protected in Europe.

But such recognition would not come easily, since its rival neighbour Pakistan — which has been in conflict with India over the disputed Kashmir region since the partition of the two countries in 1947 — also demands the EU to recognise basmati as of Pakistani origin.

The protection of GIs carries significant economic stakes. Trade talks between the EU and its partners usually include a separate section dedicated to it. Owing to its rich artisanal and culinary heritage, the EU — largely thanks to France, Italy and Spain — holds the largest number of GIs in the world.

In trade negotiations, Brussels seeks to have as many of its products as possible protected by the other party to prevent counterfeiting in that country, with France’s champagne and Italy’s famed Parmigiano Reggiano cheese being the most commonly forged products.

And the other party to the negotiation can accept, provided the agreement also defends its own interests and GIs.

The failure of a joint recognition

If it were up to the EU alone, it would have recognised basmati rice as Indian and Pakistani long ago — but it’s not that simple.

At the beginning, things hadn’t started off so badly. In fact, India and Pakistan had jointly led a fight against a US company RiceTec, which had obtained a patent on basmati rice in the late 1990s. In 2001, the US Patent and Trademark Office revoked that patent.

A few years later, to protect the origin of basmati in the EU, Islamabad and New Delhi collaborated between 2004 and 2008 on a joint application to the European Commission for the recognition of their shared heritage over the rice which comes from the Punjab region, situated on the border between India and Pakistan.

But the 2008 Mumbai attacks, in which 160 people were killed and which India attributed to Pakistani intelligence services, shattered the joint efforts of the two countries and reshuffled the deck.

After years of deadlock and tension, India unilaterally submitted a request for GI registration to the European Commission in 2018.

The application states that the rice, characterised by “an exquisite aroma, sweet taste, soft texture, delicate curvature,” is grown in the Indo-Gangetic plains, a geographic zone divided between India, Pakistan, Cambodia and Nepal, which also includes the Punjab region.

In the months that followed, Pakistan opposed India’s application, perceiving it as an attempt to secure exclusive use of the term “basmati”.

And after unsuccessful exchanges between the lawyers of both parties, Pakistan submitted its own request for GI status in 2023, listing not only the Indo-Gangetic plains but also four districts of the much-disputed Kashmir — Mirpur, Bhimber, Poonch, and Bagh — as places where basmati rice is grown.

Both sides deny requests for exclusive recognition

After several years of attempting to mediate between the two rival brothers, the EU found itself caught in the trap of territorial recognition of Kashmir — the core of the territorial dispute between India and Pakistan.

“The Commission is trying to defuse a geopolitical conflict,” Matteo Mariano, expert in trademarks at Novagraaf law firm said.

“It could have said ‘first come, first served,’ but it chose not to, considering that the territorial issues between India and Pakistan are not its concern.”

Sources from both Pakistan and India that were contacted by Euronews denied that their country was asking for exclusive recognition of the basmati origin. Yet, the path to a common solution does not seem to be emerging.

In the midst of negotiations for a much broader trade agreement — ranging from automotive markets to dairy products to public procurement — the EU finds itself walking a tightrope.

“If the Commission is strong-handed, it can force a joint registration by Pakistan and India”, Mariano said. “This depends on the importance of the trade agreement for India and whether the EU has time to block negotiations on GIs,” he explained.

According to the lawyer, if India wants to have doors opened for itself, the EU can leverage that to benefit its own companies.

But for that, the Commission will need to be a shrewd strategist, as Delhi is represented by “tough negotiators,” Šefčovič himself conceded in September.

SEOUL — President Trump announced on Wednesday that the U.S. had struck a trade deal with South Korea, which will now face a 15% tariff on its exports.

Under the deal, South Korea will invest $350 billion in key U.S. industries and purchase $100 billion worth of its liquified natural gas, Trump wrote on social media on Wednesday. He added that further investments would be announced when South Korean President Lee Jae Myung visits Washington in the next two weeks.

The new rate is a significant reduction from the 25% Trump had announced via a letter earlier this month, but still a blow to the longstanding free trade regime that had, for years, kept duties on goods from either country close to zero. Trump has long decried this arrangement as unfair to the U.S., which last year recorded a $66 billion trade deficit with South Korea.

“We are seeing that the negotiations happening in many countries since April are unfolding in a way that is very different from the principles of the WTO or FTA,” said Kim Yong-beom, a senior policy official for South Korea’s presidential office, at a press conference on Thursday. “It is regrettable.”

Kim said that South Korean negotiators had pushed for a 12.5% rate on automobiles — one of the country’s most important exports to the U.S. — but that they had been rebuffed, with Trump firm on his stance that “everybody gets 15%.”

U.S. and South Korean officials appear to be interpreting the deal — whose details are still scant — in different ways.

New cars for export on a car carrier trailer arrive at a port in Pyeongtaek, South Korea, on April 15, 2025.

(Lee Jin-man / Associated Press)

Calling it an “historic trade deal,” commerce secretary Howard Lutnick wrote on social media that “90% of the profits” of South Korea’s $350 billion investment would go “to the American people,” a claim that has immediately raised eyebrows in South Korea.

Trump said something similar about the $550 billion investment package included in the trade deal struck with Japan earlier this month. Japanese officials, on the other hand, have said the profits would be split proportionately, based on the amount of contribution and risk from each side.

At the press conference, Kim said that Seoul is operating under the assumption that 90% of the profits will be “re-invested” — not unilaterally claimed. He added that the specific terms still need to be laid out on a “per-project basis.”

“In a normal civilized country, who would be able to accept that we invest the money while the U.S. takes 90% of the profits?“ he asked.

South Korean President Lee Jae Myung has framed the $350 billion investment as a boost to South Korean shipbuilding, semiconductor and energy companies trying to make inroads into the U.S. markets.

“This agreement is the meeting of the U.S.’ interest in reviving manufacturing and our intention to make South Korea companies more competitive in the U.S. market,” he said in a social media post on Thursday. “I hope that it will strengthen industrial cooperation between South Korea and the U.S. as well as our military alliance.”

While Trump also said that “South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American product including Cars and Trucks, Agriculture, etc,” Kim said that agriculture was not part of the deal and that no concessions on U.S. rice or beef — two major points of contention between Seoul and Washington — were given.

South Korea, which is the world’s top importer of American beef, currently bans beef from cattle that are older than 30 months on concerns it may introduce bovine spongiform encephalopathy, or mad cow disease.

Given its status as a staple crop and a critical source of farmers’ livelihoods, rice is one of the few agricultural goods heavily protected by the South Korean government. Seoul currently imposes a 5% tariff on U.S. rice up to 132,304 tons, and 513% for any excess.

“We were able to successfully defend a lot of our positions in those areas,” Kim said.

Published on
10/06/2025 – 7:36 GMT+2

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Asian shares were marginally higher on Tuesday as investors kept an eye on US-China trade talks that might help stave off a recession.

Tokyo’s Nikkei 225 gained 0.9% to 38,445.68, while the Kospi in South Korea jumped 0.3% to 2,865.12.

Hong Kong’s Hang Seng edged 0.3% higher, to 24,261.26 and the Shanghai Composite index was up 0.1% at 3,403.52. In Taiwan, the Taiex surged 2.1% to 22.253,46.

Australia’s S&P/ASX 200 advanced just less than 0.9% to 8.588,10.

On Monday, the S&P 500 edged up just 0.1% and at 6,005.88 is within 2.3% of its record set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, to 42,761.76.

The Nasdaq composite added 0.3% to 19,591.24.

A second day of talks between the US and China was planned after the two global powers met in London for negotiations.

The hope is that they can eventually reach a deal to reduce painfully high tariffs against each other. Most of the tariff hikes imposed since US President Donald Trump escalated his trade war have been paused to allow trade in everything from tiny tech gadgets to enormous machinery.

Hopes that President Donald Trump will lower his tariffs after reaching trade deals with countries around the world have helped the S&P 500 win back gains after it dropped roughly 20% from its record two months ago. The index is back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on so-called “Liberation Day”.

Some of the market’s biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4bn (€2.1bn). IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08bn (€947.1mn).

On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products.

Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk’s relationship with Trump broke apart, and it rose 4.6% on Monday after flipping between gains and losses earlier in the day.

The frayed relationship could end up damaging Musk’s other companies that get contracts from the US government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX’s expense, rose 2.5%.

In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers’ expectations for coming inflation eased slightly in May.

Economists expect a report due on Wednesday to show that inflation across the country accelerated last month to 2.5% from 2.3%.

The Federal Reserve has been keeping its main interest rate steady as it waits to assess the inflationary effects of Trump’s tariffs. A persistent increase in inflation expectations among US households could drive behaviour that creates a vicious cycle that only worsens inflation.

In other dealings early on Tuesday, US benchmark crude oil picked up 31 cents to $65.45 per barrel. Brent crude, the international standard, also gained 31 cents, to $67.35.

The dollar rose to 144.93 Japanese yen from 144.61 yen. The euro slipped to $1.1399 from $1.1421.

By Tina Teng

Published on
30/05/2025 – 8:03 GMT+2

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A Federal appeals court temporarily blocked a ruling from the Court of International Trade that barred most of the Trump administration’s sweeping tariffs on global trading partners. The legal development reignited uncertainty, sparking renewed selloffs in US stock markets and dragged the US dollar sharply lower from its intraday high.

The decision provides the White House with additional time to defend the legality of the president’s efforts to reshape global trade relations. Federal officials signalled that the same level of import levies could be reintroduced under alternative legal authorities, although enacting tariffs via other sections of the Trade Act could take several months.

“I can assure the American people that the Trump tariff agenda is alive, well, healthy and will be implemented to protect you, to save your jobs and your factories, and to stop shipping foreign wealth — our wealth — into foreign hands,” Peter Navarro, Trump’s top trade adviser, said on Thursday.

Trump had invoked the International Emergency Economic Powers Act (IEEPA) to impose the so-called reciprocal tariffs announced in early April. However, on Wednesday, the trade court ruled that the president does not have the authority to impose such broad levies under the IEEPA.

“America cannot function if President Trump — or any other president, for that matter — has their sensitive diplomatic or trade negotiations railroaded by activist judges,” said White House Press Secretary Karoline Leavitt. “Ultimately, the Supreme Court must put an end to this for the sake of our Constitution and our country.”

Wall Street pares early gains

The US stock markets initially jumped on the original court ruling, alongside positive quarterly earnings results from Nvidia. However, major indices gave up early gains despite a higher close on Thursday. During Friday’s Asian session, US stock futures continued to fall as risk-off sentiment prevailed.

As of 4 am CEST, Dow Jones Industrial Average futures were down 0.08%, while the S&P 500 and Nasdaq 100 futures both declined 0.26%.

European markets are also expected to open lower, according to futures pricing. The Euro Stoxx 50 was down 0.19%, and Germany’s DAX slipped 0.15%. German equities extended losses for a second consecutive day on Thursday, following a record high on Tuesday. Investors will be closely watching the progress of US-EU trade talks, though the legal battle surrounding the Trump administration’s tariffs is adding complexity to the outlook.

Asian equity markets also traded mostly lower on Friday. Hong Kong’s Hang Seng Index fell 1.4%, Japan’s Nikkei 225 lost 1.39%, and South Korea’s Kospi dropped 0.61%. Australia’s ASX 200 was flat as of 3:10 am CEST.

The US dollar tumbles as haven assets rise

The latest court developments have once again dented investor confidence in US assets, particularly the dollar. Yields on US government bonds initially jumped to 4.5% but later pulled back to 4.42% as Treasury prices came under renewed pressure.

Meanwhile, haven assets have rallied. Gold jumped, and the euro, the Swiss franc, and the Japanese yen all strengthened significantly. The euro rebounded sharply from an intraday low against the dollar on Thursday after the tariff ruling was paused. The EUR/USD pair fell as low as 1.1210 before surging to 1.1353 as of 3:11 am CEST on Friday. Gold futures also swung higher, climbing to $3,321 per ounce from an intraday low of $3,269 on Thursday.