Before India visit, Trump says 'saving' trade deal for later
United States President Donald Trump, who is scheduled to visit India on February 24 and 25, indicated the much-talked-about trade deal will not be signed. Speaking to reporters at Joint Base Andrews on Tuesday, Trump said India doesn't treat them (the US) very well, although he likes Prime Minister Narendra Modi a lot. "I am really saving the big deal for later," he claimed.
With Melania by his side, Trump to visit India
This is the first time Trump will be visiting India as the US President, along with First Lady Melania Trump. His itinerary includes inaugurating the world's biggest cricket stadium in Ahmedabad, spending some time in Delhi, and also paying a visit to Agra. Trump is expecting a crowd of millions in Gujarat and claimed PM Modi promised the same.
India had high hopes from Trump's visit
Beyond the hearty welcome, New Delhi was really hoping to ink the trade deal, even a partial one. But with his words, Trump has dashed all expectations. He said, "We are doing a very big trade deal with India. We will have it. I don't know if it will be done before the election, but we will have a very big deal with India."
Trump likes PM Modi but not how India does trade
There's no clarity on whether US Trade Representative Robert Lighthizer, the tough negotiator who has been in touch with Union Commerce Minister Piyush Goyal, will be accompanying Trump or not. Expressing his dissatisfaction with India, Trump, who adheres to the "America First" policy, said, "We're not treated very well by India." He followed the statement with "I happen to like PM Modi a lot."
Take a look at what Trump said
India has altered its policies to accommodate US
To get Trump on-board, New Delhi has extended an olive branch of sorts. It offered access for American farm products like alfalfa hay, pecans, and dried distillers grains. Further, New Delhi also mulled the idea of bringing down duties on Harley Davidson motorcycles. In return, New Delhi wants the US to restore its GSP status, which gave India tariff-free access to the latter's markets.
India's Union Budget miffed the US
Introduction of new tariffs by both the US and India complicated trade talks. In its Union Budget, read out by Finance Minister Nirmala Sitharaman on February 1, India increased duties on medical devices, infuriating the US. Some in the US didn't like the trade deal as their concerns weren't addressed. These included restrictions that the Indian side levied on the flow of data.
Expert believes Trump is being "needlessly combative"
"The Trump administration has been needlessly combative with India on trade and investment issues, complicating an already difficult dimension of bilateral relationship. Even a so-called 'mini deal' on trade is likely to be embarrassingly modest," said Joshua White, who served under Trump's predecessor Barack Obama.
