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Trump in India: US president due to begin first official trip

  • Trump in India: US president due to begin first official trip
    Ahmedabad joint rally with Trump will be historic, says Modi Trump in India: US president due to begin first official trip
Region:
India
Category:
Politics
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US President Donald Trump is due to begin his first official trip of India with a focus on deepening ties between the world's two largest democracies.

Mr Trump will arrive in Gujarat, home state of India's Prime Minister Narendra Modi, where he is expected to address a rally at a cricket stadium.

He will then travel to Agra to see the Taj Mahal, before arriving in the capital Delhi for talks with Mr Modi.

But amid the fanfare, a much-talked about trade deal is unlikely to happen.

The US is one India's most important trade partners, with bilateral trade totalling $142.6bn (£110.3bn) in 2018. The US had a $25.2bn goods and services trade deficit with India, its 9th largest trading partner in goods.

Despite growing political and strategic ties, there's been tension over trade issues. Mr Trump has said India's tariffs - taxes on imports - are "unacceptable", and has described India as the "king" of tariffs.

In June 2019, the US ended preferential trade status for India, the largest beneficiary of the Generalized System of Preferences (GSP) - a scheme that allows some goods to enter the US duty-free.

The move caused a diplomatic riff between the two countries after India imposed retaliatory tariffs on 28 US products.

An official US report last year said India's tariff rates on other members of the World Trade Organization (WTO) remain "the highest of any major economy".

The two sides have also differed over price controls on medical equipment and India's new rules on data storage.

The trade deal was likely to resolve some of these issues. But just days before the visit, Mr Trump announced that he was "saving the big deal for later on".

Reports say negotiations continued between the two sides until last week, but they were not able to reach a consensus on issues like the restoration of the GSP for Indian goods, and India agreeing to open some of its key markets for US goods.