POTUS for ‘big deal’, but raises concern ‘India not treating US’ well in trade
Prime Minister Narendra Modi and US President Donald Trump will hold extensive talks here on February 25 on a whole range of bilateral issues, including defence and trade. Trump is scheduled to arrive in India on a two-day visit starting February 24. While looking forward to his visit, Trump said he is saving the “big deal” in trade for later and voiced concerned over “India not treating US” well in trade.
Explaining the contours of the high-profile visit, Foreign Secretary Harsh Vardhan Shrigla said on Wednesday Modi and Trump will hold talks to deepen cooperation in a range of key sectors, including defence and trade.
The US President will be accompanied by First Lady Melania Trump and a high-level delegation, he said, adding India and the US have an unprecedented level of convergence.
Though Trump is not happy with the bilateral trade ties, he praised Modi and said he is looking forward to his visit to India. “I happen to like Prime Minister Modi a lot,” Trump said.
“He (Modi) told me we’ll have seven million people between the airport and the event. And the stadium, I understand, is sort of semi under construction, but it’s going to be the largest stadium in the world. So it’s going to be very exciting... I hope you all enjoy it,” he told reporters in Washington on Tuesday. He was referring to a scheduled joint public rally with Modi at the newly-built Motera Stadium in Ahmedabad.
Shringla said the ‘Namaste Trump’ event in Ahmedabad on February 24 will be similar to the ‘Howdy Modi’ event that was held in Houston last year. The couple will visit Agra later the same day.
Meanwhile, Trump said he is “saving the big deal” with India for later and does not know if it will be signed before the presidential election in November, signalling that a bilateral trade pact may not materialise during his maiden visit to New Delhi.
Trump, forcefully pursuing his ‘America first” policy, has previously described India as a “tariff king” for imposing “tremendously high” tariffs on American products, also expressed dissatisfaction over the US-India trade ties. “Well, we can have a trade deal with India, but I’m really saving the big deal for later on,” Trump told reporters at the Joint Base Andrews outside Washington on Tuesday when asked whether he expects a trade deal with India before the visit.
During his interaction with journalists, Trump once again voiced his concern over US-India trade relations. “We’re not treated very well by India,” the US president said. The US and India could sign a “trade package” during Trump’s visit, according to media reports.
US Trade Representative Robert Lighthizer, the point-person for trade negotiations with India, may not accompany Trump to India, sources said. However, officials have not ruled it out altogether.
Multiple rounds of talks have taken place between Commerce Minister Piyush Goyal and Lighthizer in the past few weeks over telephone. India is demanding exemption from high duties imposed by the US on certain steel and aluminium products, resumption of export benefits to certain domestic products under their Generalised System of Preferences (GSP), greater market access for its products from sectors including agriculture, automobile, auto components and engineering.
On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, and cut on import duties on some ICT products. The US has also raised concerns over high trade deficit with India which was USD 16.9 billion in 2018-19.
In New Delhi, sources said India and US do not want to rush in finalising a trade deal and both sides will take a decision on it considering a long-term view.
They also said some defence deals may fructify during Trump’s visit.
Listing out the schedule in New Delhi, Shringla said Modi will host a lunch for Trump, while President Ram Nath Kovind will host a banquet in honour of the visiting dignitary.
Underlining the importance of the visit, Shringla said this will be Trump’s 5th meeting with Modi in eight months (after Osaka, Biarritz, Houston, New York) --- reflecting the renewed intensity of high-level bilateral engagement since the NDA Government returned to power.
He said relationship with the US has evolved to one of our most consequential relationships today. It is a strategic partnership based on shared values and geared towards the 21st century. Both the countries have unprecedented convergence of interests in countering terrorism or in ensuring a peaceful and prosperous Indo-Pacific.
As regards defence ties, the Foreign Secretary said India has procured over US$18 billion worth of defence items from the US, enhancing our defence preparedness significantly. “We conduct more bilateral exercises with each other than we do with any other country,” he added.
The US is India’s largest trading partner in goods and services combined, and the overall bilateral trade increased by over 10 per cent per annum over the past two years to reach US$ 142 billion in 2018; it is expected to cross US$ 150 billion for the first time this year. It is now also our 6th largest source of crude oil imports, with hydrocarbon imports rising to US$ 7 billion in the last two years, he said.