Trump`s trip to India has no trade deal. Here`s what didn`t work out. Modi`s impulses are not so close to Trump`s internal political imperatives, but they are in direct contradiction to India`s WTO commitments. And Modi`s trade objectives are at odds with the Trump administration`s zero-sum vision of international trade. Here is what did not happen: the United States and India did not produce a trade agreement, although there has always been evidence that both sides are running to conclude the agreement. Despite Trump`s assurances that negotiators would work on “the big deal for later,” the lack of a limited trade deal reveals the difficulties of trade with India. With respect to free trade agreements, he said the department was “now reviewing and renewing” all old trade agreements to create symmetry and more balanced trade. “We believe that India is competitive and that we can really benefit from fair and equitable trade expansion if we implement free trade agreements with appropriate stakeholder consultations and take into account India`s capacity to meet the demands, particularly quality, of these countries and ensure that these free trade agreements are not implemented at the expense of Indian industry and business. He added that in previous free trade negotiations, “we have always had a crude agreement.” The civil nuclear agreement between India and the United States, signed on October 10, 2008 and also known as “Agreement 123,” is a bilateral peaceful nuclear cooperation agreement that governs civil nuclear trade between U.S. and Indian companies in order to mutually participate in each other`s civilian nuclear sector. [238] For the agreement to be operational, nuclear vendors and operators must comply with India`s Nuclear Liability Act 2010, which requires nuclear suppliers, contractors and operators to assume financial responsibility in the event of an accident.

For now, Modi has little incentive to undertake potentially unpopular structural economic reforms needed to satisfy Trump. Will the U.S. Trade Representative take a more aggressive approach in the future, as will the government`s harsh attitude towards China? Despite the president`s assertions that “America loves India,” the future of bilateral trade relations remains more uncertain than ever. India is currently our $92.0 billion (two to two) merchandise trade in 2019. Exports of goods totaled $34.3 billion; Imports of goods amounted to $57.7 billion. In 2019, the U.S. goods trade deficit with India was $23.4 billion. Citing examples of such agreements, he said that India had eliminated tariffs on about 74% of goods for Indonesia under the free trade agreement with the 10-member Asian Nations bloc of ASEAN, but had abolished tariffs for only 54% for India. “…. Why did India not, on the whole, be able to gain greater exports with almost all countries, but imports were invested in… Large imports benefited from these free trade agreements, while Indian companies did not enjoy this advantage and we ended up with unequal trade and growing trade deficits,” he said.

However, the Trump administration has focused on headlines rather than entering into deals to increase trade in strategic sectors.