Power, Partnerships and Pressure
Mother of all Deals
In New Delhi on 27 January 2026, India and the European Union sealed what leaders are already calling the “mother of all deals,” a historic free-trade agreement that could reshape the global economic landscape. After nearly two decades of negotiations, Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President António Costa concluded a pact that will slash tariffs on 96.6 percent of EU exports, dramatically opening India’s vast and traditionally protected market to European cars, machinery, pharmaceuticals and more. At the same time, India will gain preferential access to the EU’s consumer market for textiles, engineering goods and services.
This deal, which still faces ratification by EU member states, the European Parliament and India’s cabinet before taking effect, builds a trade zone covering an estimated 2 billion people and a large share of global GDP. Brussels expects its exports to India could double by 2032, saving about Euro 4 billion annually in duties, while Indian producers see expanded opportunities for labour-intensive goods such as textiles, tea and gems.
But the summit was more than economics. Diplomats framed the agreements as a strategic pivot toward multipolarity, reducing reliance on any single partner and insulating both sides from rising protectionism, notably from the US, and the shifting currents of global influence. India’s External Affairs Minister S. Jaishankar said the summit “strengthens multipolarity and helps de-risk the global order.”
The summit also produced a security and defence partnership and frameworks for mobility and research collaboration, including potential Indian participation in the EU’s Horizon programme. These agreements signal a deepening geopolitical alignment beyond trade, rooted in shared democratic values, resilience and a rules-based international order.
In essence, the EU-India Summit did more than ink a trade deal: it charted a new chapter of strategic cooperation between two of the world’s largest democracies, offering a counter-weight to global economic volatility and signalling that larger geopolitical architecture is being reconfigured.
Allies in Trade Tussle
In a surprise move this week, US President Donald Trump announced on 26 January 2026 that he intends to raise tariffs on South Korean imports, including automobiles, lumber and pharmaceuticals, from 15 percent back to 25 percent, rattling what has been one of Washington’s closest economic partnerships in Asia. The trigger was Seoul’s failure to secure ratification of a bilateral trade and investment deal approved with President Lee Jae Myung in July 2025 but still unpassed in the South Korean legislature. Trump argued that since the Korean parliament had not enacted enabling legislation, the United States would revert to higher levies.
The 2025 deal had been heralded as a major win: South Korea committed to approximately USD 350 billion in investment in US industries and market access enhancements in exchange for a tariff cap on Korean exports. But political gridlock in Seoul, where the ruling Democratic Party has struggled to advance the required bills, has given Trump a pretext to resurrect broader tariffs. Seoul said it had not received formal notification of the tariff rise and dispatched officials to Washington for urgent talks.
Behind the headlines lies a broader pattern: tariff policy under Trump is increasingly wielded not just as a revenue tool, but as leverage in diplomatic and legislative squabbles, a strategy that has also touched Canada, Europe and now South Korea. Amid the uncertainty, Trump pointedly said he expects to “work something out with South Korea,” leaving open the possibility that the levies could be negotiated down if Seoul moves swiftly on its end.
No Borders in Space
Australia marked a defining moment in its space journey this week as Katherine Bennell-Pegg, the country’s first qualified female astronaut, was named Australian of the Year 2026. Trained under the European Space Agency, Bennell-Pegg emerged from a field of more than 22,500 applicants to earn full astronaut certification, a milestone that signals Australia’s arrival as a serious contributor to human spaceflight.
At the awards ceremony in Canberra, Bennell-Pegg used the spotlight to widen the lens beyond national achievement. “You can’t see any borders from up there,” she said, capturing the perspective astronauts often describe but rarely bring into public debate. The line landed with force, reframing space not as a contest of flags but as a shared human endeavour.
Her achievement is particularly significant because, unlike earlier Australian-born astronauts who flew under US programmes, Bennell-Pegg represents a home-grown space ecosystem, shaped by the Australian Space Agency’s push into advanced technology, international collaboration and STEM development.
A New Face to Australian Diplomacy
Australia has named Greg Moriarty, the current head of its Defence Department, as its next Ambassador to the United States, a high-profile pick that signals Canberra’s intent to sharpen ties with Washington at a pivotal moment in global geopolitics. Moriarty, a career public servant and one of the country’s top national security officials, will succeed former prime minister Kevin Rudd in Washington, bringing deep defence, intelligence and diplomatic experience to the alliance’s front line.
Moriarty’s appointment was announced on 25 January 2026, and comes amid intensifying strategic cooperation between Canberra and Washington, especially through AUKUS, joint military exercises, and expanding defence industrial linkages. As head of the Department of Defence since 2017, he has overseen major capability investments and integration efforts with U.S. forces, making him a familiar figure to U.S. counterparts. His move to the ambassadorial post is widely seen in Canberra as a way to deepen strategic dialogue on Indo-Pacific security, defence supply chains, and shared concerns about China’s regional assertiveness.
Written by Sarthak Ahuja
January 28, 2026