India and the US need to address the vexed issues in trade.
What is the brief history of Indo-US cooperation?
In diplomacy, personal rapport and trust between the leaders is quite valuable.
External Affairs Minister Jaswant Singhoffered quick unilateral support in May 2001 when US President George W Bush’s announced an initiative to build missile defenses and move away from the doctrine of deterrence through nuclear terror.
This was followed by Atal Bihari Vajpayee’s strong support for Bush’s war on terror immediately after 9/11 and set the stage for a political and strategic approach to the Indo-US relationship that was hobbled for decades by disputes over nuclear issues.
While the UPA government wavered in taking the nuclear deal forward, Bush stayed the course thanks to his strong empathy for India.
The resolution of the nuclear issue created the basis for a productive partnership with the US that saw liberalization of US technology transfers, the launch of counter-terror cooperation, the expansion of defense relationship and political cooperation on regional and global issues.
PM Modi saw that addressing climate change was President Barack Obama’s highest priority.
Once he saw Modi as a partner, Obama helped finalize the nuclear agreement and integrate India into the global nonproliferation regimes.
What are the present issues in Indo-US trade ties?
In recent times Modi recognized the centrality Trump’s trade concerns; the PM’s initial responses did not seem adequate.
More consequentially, Modi did not devote enough political attention to the emerging challenges on the trade front.
India’s prickly attitude to trade liberalization that congealed in recent years put it at odds with its major trading partners.
While most of them had given up on India, Trump made it a bone of contention.
Put simply, market access has been the issue that has troubled the relationship in recent years.
According to recent reports Modi and Trump are apparently racing to wrap up the negotiations on trade that have been underway for some time.
The speculation is about a “small deal” between the two countries.
Yet, the two leaders also know that they need to look beyond the tactical and signal a change of direction in bilateral commercial engagement and set ambitious trade targets for the near and medium term.
What is the way forward?
A new trade agreement must be about preparing India for profound changes in the global economic order, buffeted by Trump’s politics as well as the unfolding technological disruption.
Getting India’s most important trade relationship right in the near term and charting a bold course for a mutually beneficial commercial partnership with the US over the long term are urgent and worthy goals in themselves.
Indian administration is aware that a trade deal with USA, will make it a lot easier to deal with his administration on a range of issues including terrorism, Kashmir and the unfolding crisis in Afghanistan.
Although the leaders themselves might not negotiate the details of agreements, they need to communicate their respective interests to each other and signal the political will to overcome domestic obstacles.
In the last two decades, the success of India’s engagement with the US has been rooted in Delhi’s sensible judgement about the immediate focus of the other leader.
