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Wednesday, July 17, 2024

”We are not treated well by India,” Trump responds about trade deal

When asked about the trade deal with India before his visit to India, the United States President Donald Trump said that India had not treated the US pertaining to GSP plus status withdrawal from India. The US President is visiting India on Feb, 24-25. However, trade representative Robert Lighthizer, the point-person for trade negotiations with India, may accompany Donald Trump during a visit to India.

The president of the United States while interacting with the media in the United States said that India had not treated the United States well, therefore, a big trade deal may not be part of the visit to India.

Furthermore, he said that the big trad India may be saved for later, adding that he doubted if it would be materialized before the presidential election in November 2020.

“We can have a trade deal with India. But I’m really saving the big deal for later,” Donald Trump told reporters at Joint Base Andrews Tuesday.

Read more: US Decision to End India’s Preferential Trade Status a “Done Deal”

Asked whether he expects a trade deal with India before the visit, Donald Trump said, “We’re doing a very big trade deal with India. We’ll have it. I don’t know if it’ll be done before the election, but we’ll have a very big deal with India.”

US Trade Representative Robert Lighthizer, the trade representative and negotiations with India may not accompany Donald Trump to India, showing that the trade deal may not be made during the visit.

US ended India’s Preferential Trade Status

President Donald Trump removed India’s preferential trade status in May 2019, which affected $5.6 billion worth of Indian exports to the US.

A US decision to evict India from a key trade pact is a “done deal,” an official said Thursday, despite Washington’s desire for close relations with re-elected Prime Minister Narendra Modi. President Donald Trump’s administration said in March it was removing India from the Generalized System of Preferences, which gives favorable access to goods from developing countries.

The US Presses India to Loosen Regulations

The official said that India “remains one of the least open major economies in the world,” adding: “The Trump administration is committed to ensuring free, fair and reciprocal trade.”

The Trump administration said it was removing India from the GSP due to trade barriers and also terminating the status for Turkey on the grounds that it was no longer a developing country. Trump has taken a tough line on trade even with US allies and has been especially incensed at Indian tariffs on high-end manufactured goods such as motorcycles.

Read more: Tens of thousands protest in India for controversial Hindu temple

In another major sticking point in negotiations that led to the decision, the United States had pressed India to loosen regulations on the import of US dairy products. India had objected on cultural grounds as US cows are often fed blood meals from other cattle.

As most Hindus do not eat beef, India unsuccessfully asked the US dairy industry to certify how the cows are fed. The official nonetheless said that the United States hoped to boost relations with Modi, including on defense cooperation.