India and the US agreed last week to start talks to clinch an early trade deal and resolve their standoff over tariffs as New Delhi promised to establish the US as a leading supplier of crude oil, petroleum products, and liquefied natural gas (LNG) to India.
The meeting between the US president Donald Trump and Prime Minister of India, Shri Narendra Modi, which is expected to boost the energy trade, broadens avenues for importing liquefied natural gas (LNG).
Donald J. Trump hosted the Prime Minister of India, Shri Narendra Modi for an official working visit in Washington, DC on February 13.
The two countries reaffirmed their commitment to increasing energy trade, ensuring energy security, and establishing the US as a leading supplier of crude oil, petroleum products, and liquefied natural gas (LNG) to India, the official statement said.
Batting for a level-playing field, Trump said during the India – USA joint press conference, “The Prime Minister and I also reached an important agreement on energy that will restore the United States as a leading supplier of oil and gas to India. It will be, hopefully, their number one supplier.”
On the hot issue of tariffs, Trump said: “Prime Minister Modi recently announced reductions to India’s unfair, very strong tariffs that limit U.S access into the Indian market, very strongly. And really, it’s a big problem.”
“I must say, India imposes a 30 to 40 to 60 and even 70% tariff on so many of the goods, and in some cases, far more than that.”
India and the US also underscored the tremendous scope and opportunity to increase trade in the hydrocarbon sector including natural gas, ethane and petroleum products as part of efforts to ensure supply diversification and energy security.
The two sides committed to enhance investments, particularly in oil and gas infrastructure, and facilitate greater cooperation between the energy companies of the two countries.
They also welcomed early steps to demonstrate mutual commitment to address bilateral trade barriers.
Trump acknowledged India’s recent decision to reduce tariffs on U.S. products of interest in the areas of bourbon, motorcycles, ICT products and metals, as well as measures to enhance market access for U.S. agricultural products, like alfalfa hay and duck meat, and medical devices.
“As we deepen our defence partnership, we will also strengthen our economic ties and bring greater fairness and reciprocity to our trading relationship as a signal of good faith,” Trump said during the joint press conference.
India also expressed appreciation for U.S. measures taken to enhance exports of Indian mangoes and pomegranates to the United States. Both sides also pledged to collaborate to enhance bilateral trade by increasing U.S. exports of industrial goods to India and Indian exports of labor-intensive manufactured products to the United States.
The two sides will also work together to increase trade in agricultural goods.
The leaders also underscored the value of strategic petroleum reserves to preserve economic stability during crises and resolved to work with key partners to expand strategic oil reserve arrangements.
In this context, the U.S. side affirmed its firm support for India to join the International Energy Agency as a full member.
