Trump seeks removal of barriers for US exports to India

Team Udayavani, Jun 27, 2017, 4:42 PM IST

Washington : US President Donald Trump today asked Prime Minister Narendra Modi to do more to reduce obstacles to US exports to India as the two leaders vowed to further “expand and balance” Indo-US trade relationship.

Alongside Modi after their talks here, Trump told the media that India-US must have “a trading relationship that is fair and reciprocal”. “It is important that barriers be removed to the export of US goods into your markets and that we reduce our trade deficit with your country,” he said.

India is the US’ ninth largest trading partner with the total two-way trade INR 4,368.87 billion last year, as per USTR figures. It is loaded in favour of India, which runs a surplus of INR 1,548.79 billion. It however fades into insignificance when compared to China which runs a surplus of INR 22,392.88billion with the US.

The surplus with US is India’s largest with a trading partner. A joint statement issued after talks said the two leaders committed that the United States and India — leading engines of growth in the global economy — should intensify their economic cooperation.

“Noting that extensive economic and tax reforms launched in their respective countries will unlock immense economic opportunities for both countries, the leaders committed to further expanding and balancing the trade relationship and to removing obstacles to growth and jobs creation,” it said.

While the US president offered thanks for Indian airline’s recent order of 100 new American planes and Indian interest in military armaments, Modi said his economic plan and Trump’s ‘Make America Great Again’ stance “will add new dimensions to our cooperation”.

Trump said US looked forward to exporting more energy, including liquefied natural gas (LNG) on long-term contracts. The two leaders, the joint statement said, resolved to pursue increased commercial engagement based on the principles of free and fair trade.

“To this end, the United States and India plan to undertake a comprehensive review of trade relations with the goal of expediting regulatory processes; ensuring that technology and innovation are appropriately fostered, valued, and protected; and increasing market access in areas such as agriculture, information technology, and manufactured goods and services,” it said.

Trump and Modi further committed to strengthening cooperation to address excess capacity in industrial sectors. They called on their teams to find creative ways to improve bilateral trade. Affirming the continued importance of their Strategic Energy Partnership, the two leaders called for a rational approach that balances environment and climate policy, global economic development, and energy security needs.

“President Trump affirmed that the US continues to remove barriers to energy development and investment in the United States and to…energy exports so that more natural gas, clean coal, and renewable resources and technologies are available to fuel India’s economic growth and inclusive development,” the statement said.

Modi and Trump are looking forward to conclusion of contractual agreements between Westinghouse Electric Company and the Nuclear Power Corporation of India for six nuclear reactors in India and also related project financing.

US and India also resolved to further strengthen their collaboration in health, space, oceans, and other areas of science and technology.

“The leaders also agreed to strengthen their cooperation to address the growing threats and challenges from malicious cyber activity and committed to work together to promote an open, interoperable, secure, and reliable cyberspace environment that supports innovation, economic growth, and commerce,” the joint statement said.