External Affairs Minister S Jaishankar on Monday said India-United States ties have suffered in recent times because of Washington’s lack of understanding of India’s concerns on trade, including the Section 301 tariffs that are still unfolding, terrorism, on which it did not show empathy towards India's concerns, and mobility. The minister also forecast “a major food crisis in the coming months” because of the conflicts in Europe and West Asia and the impact of El Niño.
During a conversation moderated by former American diplomat and distinguished fellow at the Asia Society Policy Institute Daniel Russel in New York on Monday, Jaishankar was asked about the state of India-US ties, especially developments related to trade and tariffs over the past year, and what it would take to put the bilateral relationship on a “better track”. Jaishankar said that much of the world has had a more difficult relationship with the US than India. “I mean that may not be a consolation, but that's a reality,” Jaishankar said.
On the ongoing India-US trade deal negotiations, Jaishankar said, “Today, we have reached a situation where there is more or less an understanding on the trade agreement”. “But the period that it took to reach it, that did create bumps last year for the relationship. So presumably, if that agreement is closed out, that would be one point which would contribute to a better relationship,” he said.
Jaishankar suggested that Washington could not initially grasp the stakes and complexities involved, such as India being a society of small agricultural producers and small factories. Apart from the gap in per capita income between India and the US, the nature of production and society is different, and trade negotiations required a certain amount of patience and detailing to see it through, he said. The expectation that the trade deal negotiations could rapidly move forward was tested against a ground reality that was much more complex, he said.
The US Supreme Court had earlier struck down US President Donald Trump's reciprocal tariffs imposed under emergency powers, prompting Washington to adopt a different tariff framework. In July, the US imposed an additional 10 per cent tariff on imports from India under Section 301 of the Trade Act, following a probe into India's measures concerning goods produced with 'forced labour'. The two sides have since continued negotiations on their bilateral trade agreement amid the changes in the US tariff regime.
Alluding to comments by Commerce and Industry Minister Piyush Goyal, Jaishankar said, “The 301 process is still in the works, it's still unfolding. So the issue for us is at what point do you close out an agreement which is very, very far advanced.” India and the US had in February announced the finalisation of the framework for the first phase of the bilateral trade agreement. However, changes in the US tariff landscape have led to further negotiations on the pact. Goyal will visit the US from September 29 to October 5 to attend a G20 meeting in Milwaukee and hold discussions with US Trade Representative Jamieson Greer on advancing talks for the bilateral trade agreement.
The External Affairs Minister also pointed to Washington’s failure to understand India’s perspectives on the issue of Pakistan-sponsored cross-border terrorism as another pain point in India-US bilateral ties. US President Donald Trump rolled out the red carpet for Pakistan’s leadership, including hosting Pakistan Field Marshal Asim Munir for lunch at the White House in June last year.
“What for us in India is particularly important is the issue of terrorism,” Jaishankar said. Referring to Pakistan, he said there are very few countries which have been subjected to the kind of terrorism that India has faced from its neighbour as part of a deliberate, conscious policy over many, many decades. “Now, if something which matters so deeply to us, there isn't enough understanding or appreciation or empathy of that, I think that creates a problem too. If one of my primary concerns is not fully appreciated by my partner, then clearly there is an impact of that on the relationship," he said, referring to the ties between India and the US.
The External Affairs Minister also flagged the issue of mobility. He said that to some extent, bilateral ties were impacted and influenced by developments within the US. “For many years mobility was seen as an economic gain. Now, today the economics of mobility and the politics of mobility are at odds with each other,” he said. He said foreign policy or diplomacy today is no longer conducted only by states, leaders, ministers or diplomats. "In a social media era, there is a very big public opinion factor," particularly how it plays out in democratic societies, he said. “So I think that's a reality we have to take into account. So yes, we would certainly hope for and expect the relationship to move on an upward trajectory. But I have to be real about the issues that we confront, and to the extent we are able to move ahead on some of these issues, I think we'll have a better relationship," he said.
On India-China ties, Jaishankar said relations between the two neighbours are "better" today compared to a couple of years ago, attributing the upward trajectory to the resolution of the border standoff. Referring to the 'G2' summit meeting between US President Trump and Chinese President Xi Jinping last week in Washington, Jaishankar said that when the second most consequential or the weightiest economy joins the first, "while they may have their points of convergence, overall they are in a competitive mode.
"There are limits to what the two of them can agree upon vis-a-vis the rest of the world. And that then leaves the rest of us and the rest of us are coming to terms today with a very different America, with the fact that there is also today a certain conversation taking place between America and China," he said, adding that the rest of the world is busy making its arrangements.