PM Modi may sign trade deal during upcoming US visit to resolve issues

Modi will be visiting Houston, Texas, and New York as part of a six-day trip from September 21 to 27

Latest News: A mutually acceptable “trade package” is expected to be signed between India and the United States (US) during Prime Minister Narendra Modi’s upcoming trip to the US later this week. Modi will be visiting Houston, Texas, and New York as part of a six-day trip from September 21 to 27. Apart from a planned address to the United Nations, a resolution to pending trade issues is expected to be the high point in foreign policy goals, senior officials said.

The package has been in the works for more than a year and trade officials have met as many as six times to try and hammer out a deal that provides an amicable solution to grouses from both sides. India is considering the dismantling of its current price cap regime for coronary stents with a trade margin policy. It may also allow lower duties on import of certain information and communication technologies products such as high-end mobile phone and smart watches from the US that may make iPhone productscheaper in the country, commerce department officials said.

In return, the US would step back from its aggressive posturing on “reciprocal taxes” on Indian goods. Trump has repeatedly accused India of being a “high tariff nation”, referring to duties placed on Harley-Davidson motorcycles. “While the US would fall foul of the World Trade Organization norms if it imposes a ‘reciprocal tax’ against India, it would undo all the discussions so far. We would have to protect our exporters,” a senior official added. Also, since some of the proposals have met with significant opposition from the domestic industry, any possibility of reciprocal taxes on India would stop trade talks, another official added...