The recent phone conversation between Prime Minister Narendra Modi and US President Donald Trump has raised new hopes regarding the long-pending India-US trade deal. This discussion between the two leaders not only creates a positive atmosphere, but also indicates that both the countries are ready to move forward on many important issues.
Experts are seeing this call as a big sign, especially because there were obstacles on the trade deal for months. Although nothing has been officially said yet about the progress of the deal from both the governments, it is being considered as a ‘constructive move’.
What can happen in the first phase?
An ET report said that international trade experts believe that two major changes may be seen in the first phase of the deal. First, the 25% penalty tariff on Russian oil can be removed, which has been a matter of concern for India for a long time. Second, experts hope that India can also reduce some of its retaliatory duties imposed on America to the level of about 1516 percent.
According to him, if this much is achieved in the first phase then it will be considered a strong beginning for both the countries. Experts say that recent talks and some positive statements from American officials have brought the deal closer than ever.
Emphasis on strategic partnership also
PM Modi said in his social media post that during the talks, both the leaders reviewed the progress of the strategic partnership. They agreed to further intensify cooperation in areas like trade, technology, energy, defense and security. This shows that the focus of both the countries is not limited to just the deal, but also on long-term comprehensive cooperation.
Where is the deal stuck?
The expert warned that some issues still remain a challenge. The biggest controversy is related to the agriculture sector, especially America’s demand that India accept its health certificates for dairy, meat and poultry products. The dairy sector is extremely sensitive for India as it involves issues related to animal feed and religious sentiments.
Apart from this, digital trade can also become a stress point. America wants India to move e-retail platforms from the marketplace model to an inventory-based model, which will bring a major change in India’s e-commerce rules.
Deal should be close, but fair
Experts believe that overall the deal seems closer than ever, but it will be sustainable only if it is fair, equal and balanced. This also matches the comments of India’s Commerce Minister. For now, it will be interesting to see how much effect of this positive atmosphere of Modi-Trump talks is visible in the next few weeks.
