Tension rising over the United States flagging off the new tariffs on the import from different countries including Canada, China and European Union. This led to the ongoing discussion of ‘Trade war’ among different nations.
Amid rising of Trade war India and U.S. have sought a common ground where Government of India (GoI) is going to buy 1,000 civilian aircraft over the next 7-8 years. Government has calculated that about US$ 5 billion will be paid every year for aircraft.
India is also going to buy oil and gas from the U.S. which will boost more trade between two super gaints. About US$ 4 billion will be spend to buy US oil and gas in a year.
Commerce minister Suresh Prabhu conveyed this information while his talks with his US counterpart last week. US assistant trade representative Mark Linscott will begin discussion with officials of commerce ministry to find solution of problems on the trade between two nations. India have also put on import tariff on US product after US put extra duties on Steel and aluminium. This deal is also seen as to lure America as business ally.
Apart from this business deal India is expanding its defense purchases with USA. India is looking to buy 12 more naval surveillance aircraft P8i.
India and US are going to hold 2+2 talks between foreign minister Sushma Swaraj his counterpart Mike Pompeo and defense minister Nirmala Sitharaman with his counterpart James Mattis in Washington on 6th July.
According to Indian officials US were to slap ‘CAATSA’ (Countering America’s Adversaries through Sanctions Act) sanctions on India for buying defense equipment from Russia. This is likely to dominate discussions during the coming dialogue.
Sitharaman will also make a visit to the US’s recently renamed Indo-Pacific Command in Hawaii. While the defense and security relationships have improved enormously, some gaps still remain.
India and the US are working on the next foundational agreement – the communications compatibility and security agreement – which may be inked in the coming months. This comes after the logistics exchange memorandum of agreement was operationalised last year, leaving only the basic exchange and cooperation agreement to be signed between the two countries.