US-India trade deal unlikely before Trump's India trip: Business group
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In a photo taken on Sept 24, 2019, US President Donald Trump and Indian Prime Minister Narendra Modi hold a meeting on the sidelines of the United Nations General Assembly.
PHOTO: AFP
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WASHINGTON (REUTERS) - The United States and India are unlikely to reach a limited trade agreement in time for US President Donald Trump's visit to India next week, as proposed new Indian tariffs have complicated negotiations, the head of a US-based business group said on Thursday (Feb 20).
Ms Nisha Biswal, president of the US-India Business Council (USIBC), told reporters that hopes were fading for the two sides to quickly bridge gaps in their efforts to restore some US trade preferences for India and improve access for selected US agriculture products and medical devices to India's 1.3 billion consumers.
"We're still hopeful that some kind of agreement could be reached, but we do recognise and acknowledge that both governments have been indicating that is unlikely at this juncture," she said.
USIBC member companies doing business in and with India had been hoping that more than a year of negotiations would lead to a "confidence-building" agreement that could set the stage for a more comprehensive trade agreement in the future.
Ms Biswal said the group and its parent, the US Chamber of Commerce, were urging Mr Trump to nonetheless use his Feb 23-24 trip to work with Indian Prime Minister Narendra Modi to "stake out a framework" for how the world's two largest democracies can increase their trade and investment opportunities, including steps towards liberalising India's insurance sector.
"We know that American companies see India as a priority market for exports, but also see India as a priority destination for investment and locating sourcing and manufacturing. We would like to see steps that can facilitate that," she said.
In Las Vegas on Thursday, Mr Trump gave mixed messages about prospects for a trade deal with Mr Modi.
"We're going to India and we may make a tremendous deal there. Maybe we'll slow it down, we'll do it after the election," Mr Trump said at an event on criminal justice reform.
"So we'll see what happens, but we're only making deals if they are good deals because we are putting America first."
In New Delhi, an Indian Foreign Ministry spokesman said India will not "rush into" a trade deal with the US, saying there needed to be a balanced outcome.
