The Donald Trump administration has moved the United States closer to India than any previous administration on strategic issues, but disagreements on commercial issues remain challenging, according to a senior administration official. The official told The Hindu that the recent union budget might “make it more challenging.”
“We are concerned about this budget and the new round of tariffs. And I do think that this will make it more challenging, in attracting U.S investors and improving the trade relations..We have our work cut out for us, in terms of really reaching the potentials of trade and economic partnership,” the official said.
‘Keen on fair trade ties’
“The economic relationship has been a bit more difficult than the strategic area of the relationship. This administration is very interested in having fair and reciprocal trade relations with India. The President has committed to opening market access for U.S companies, obviously India also has investments in the U.S, We would like to see trade increase, we have had a little bit of success in reducing trade deficits, we hope it is a long-lasting adjustment,” the official said. Mr. Trump mentioned high tariffs on high-end motorcycles in India recently. Trade figures in the last quarters have reported a reduction in the imbalance, which is likely because of the energy import by Indian from the U.S.
The official said trade issues would be discussed during the trade policy forum in June, between the two countries.
According to the official, these commercial disagreements are playing up at a time when the strategic cooperation between the two countries has reached an unprecedented level. The official pointed out that no other country finds as many positive mentions as India does in the Trump administration’s National Security Strategy (NSS), on dealing with South Asia and Indo-Pacific.
‘Long-term view on China’
The official said the administration has taken a long-term view on China, and this will not be susceptible to any short term compromises.
“The NSS is very clear on this administration’s view on China, which is a long term view. It is clear about how we assert values that we share with India - freedom of navigation, rule of law, transparency, financing of infrastructure projects, resolution of disputes, etc. it is a long term vision and the U.S has been forthright in asserting that vision,” the official said, noting that the recent revival of the Quad dialogue is a tangible outcome of this approach.
“The U.S is very clear eyed in dealing with China and the U.S sees India playing an important role in that, ….this idea that the U.S might be making any short term changes to its strategy [is not true] — it is a long term vision,” the official said.
“Defence coop very important”
Defence cooperation is a very important part of the relationship, and the administration is “looking to move forward on Sea Guardian” UAV negotiations, the official said. The U.S is willing to do much more with India on defence, the official said, seeking more cooperation from India. “….to do that we need India to cooperate. Of course we have to protect our highest technologies. So there has to be a cooperative arrangement between the two countries.”
Asked whether the negotiations on Sea Guardian were being delayed because of the fact that India and the U.S are not signatories of all foundational agreements in defence, the official said: “It is difficult to negotiate these types of agreements…India is getting used to our system..the way we do these agreements, we are getting used to the Indian bureaucracy. so that is part of it..that is definitely part of it. Each sides is trying to make sure that it is the best deal for it. It takes certain amount of patience.”
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