President Trump Promises A ‘Very Big Trade Deal With India’

By Moderator June 29, 2019 11:45

Prime Minister Narendra Modi and U.S. President Donald Trump meet on the sidelines of the G-20 summit in, Japan, and held “very open and productive” talks on a host of issues, ranging from big trade deal disputes to the crisis in the Gulf.

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  • Trump hinted before the talks that trade prospects were improving between the two countries. He Said “I think we were going to have some very big things to announce. The very big trade deal,”
  • However, Mr. Trump didn’t provide specifics as he held meetings with Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi.

The relation between the US and India in recent time

  • Both the United States and India remain mired in trade talks that collapsed last month.
    • Trump recently excluded India from a group of developing nations eligible for preferential tariffs on goods imported to the U.S., and New Delhi responded this month by retaliating against earlier U.S. steel and aluminum tariffs that affected the country.
  • India’s decision to purchase a major air defense system from Russia has also risked US retaliation, while Trump’s mandate to New Delhi to reduce Iranian oil imports to zero has roiled the relationship even further.
  • Despite these challenges, Trump and Modi have an opportunity to pledge greater cooperation. For nearly two decades, the bipartisan consensus in the United States was to support India’s rise.
    • The rationale for this approach: A strong and prosperous India is not only good for the people of India, but also imperative to help reinforce the democratic order, especially in Asia, and this was critical to US interests as well.

Significance of the meet

  • First, it is absolutely critical to get the trade talks back online.
    • The willingness to engage, even in the midst of complex disagreements, is one of the signature elements of US-India cooperation in the past two decades.
    • In many ways, the trade issues of today are dwarfed by the larger strategic threats and opportunities that both nations collectively face.
    • The trade issues also seem eminently solvable, but they can only be resolved through rigorous and regular dialogue by committed officials who have been directed to find solutions by their respective heads of state.
  • Second, solving the trade talks requires a commitment from both nations to engage in an open, predictable and rules-based set of commercial exchanges.


  • The history of the US-India relationship shows that personal ties matter, particularly between the heads-of-government.
    • Presidents Eisenhower, Kennedy, George W. Bush, and Obama all developed close, working relationships with their Indian counterparts.
  • Such relationships are essential to breaking through each country’s complex bureaucracies.

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By Moderator June 29, 2019 11:45