Modi, Trump set to meet on G7 sidelines as India-US trade talks gather pace
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Prime Minister Narendra Modi and US President Donald Trump are expected to meet on the sidelines of the G7 Summit in France, with trade likely to be a key topic of discussion.
The White House announced on Saturday that the two leaders would hold talks during the summit, scheduled from June 15 to 17 in Evian-les-Bains. The meeting will be their first face-to-face interaction since last year's India-Pakistan conflict.
A Trump administration official told local media that the leaders would have an opportunity to discuss trade and that the United States is planning a visit to India aimed at advancing negotiations on a bilateral trade agreement.
The meeting comes at a significant juncture in India-US economic relations. Earlier, Trump said Washington and New Delhi were moving towards a comprehensive trade agreement.
A recent US delegation concluded four days of trade talks in New Delhi, with India's Commerce Ministry describing the discussions as being conducted in a spirit of cooperation and pragmatism.
According to earlier announcements, the two countries reached a breakthrough in February on a trade arrangement valued at more than $500 billion. Under the framework, the US agreed to reduce its reciprocal tariff on India from 25 per cent to 18 per cent, while India committed to reducing tariffs and non-tariff barriers on American goods.
However, the trade landscape changed after the US Supreme Court struck down Trump's broad tariff measures in a 6-3 ruling, holding that he had exceeded his authority under the International Emergency Economic Powers Act.
Another challenge remains in the form of two investigations launched by the US Trade Representative under Section 301 of the US Trade Act of 1974. The probes relate to forced labour issues in global supply chains and excess manufacturing capacity.
The USTR has proposed a 12.5 per cent tariff on imports from 54 countries, including India, in connection with the forced labour investigation. Findings from the second investigation are still awaited.
Prime Minister Modi departed for France and Slovakia on Saturday ahead of the summit.
