India-US trade deal
President Donald Trump said on Wednesday, amid ongoing talks on the proposed trade agreement between America and India, that America is making a trade agreement with India. At the Asia-Pacific Economic Cooperation (APEC) CEO Summit held in Gyeongju, South Korea, US President Trump said that he has great respect and affection for Prime Minister Narendra Modi. Trump said, if you talk about India and Pakistan… I am doing a trade deal with India and as you know I have great respect and affection for Prime Minister Modi, we have a very good relationship.
50 percent tariff was imposed on India
After this, without talking in much detail about the trade agreement, Trump once again claimed to resolve the dispute between India and Pakistan that broke out in early May. This comment of Trump has come at a time when tensions between the two countries persist after America imposed 50 percent duty on India. This 50 percent fee also includes an additional 25 percent fee for the purchase of Russian crude oil. India has termed the American action as unfair and imprudent.
It is believed that External Affairs Minister Jaishankar and US Secretary of State Marco Rubio held extensive discussions on the proposed trade agreement between the two sides during their meeting on the sidelines of the annual summit of the Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur on Monday. However, there was no indication that the US side has assured India of removing the 25 percent duty imposed on energy relations with Russia.
India said this by purchasing crude oil from Russia
US President Trump had claimed several times in the last few weeks that Prime Minister Narendra Modi had told him that India would stop buying crude oil from Russia. After Trump’s first claim, India had said that no such talks had taken place. The Ministry of External Affairs said on October 16 that energy sources are being broadened and diversified, which also includes expanding purchases from the US. It said that India’s energy purchases are entirely guided by the objective of protecting the interests of Indian consumers in an unstable energy scenario. The two goals of India’s energy policy are to ensure stable energy prices and secure supply.
Earlier, an official had said that the proposed bilateral trade agreement between India and America is on the verge of completion. The official had said last week, as far as the deal is concerned, we are very close to it. Commerce and Industry Minister Piyush Goyal had said at the Berlin Global Dialogue last week that India will not make any agreement hastily or under any kind of pressure. So far, five rounds of negotiations have been completed for the first phase of bilateral trade agreement between America and India.