US, India have made 'tremendous progress' on comprehensive trade pact: Trump

The US and India have made "tremendous progress" on a comprehensive trade agreement, American President Donald Trump said on Tuesday and expressed confidence on reaching a deal that will be of great importance to both countries. He also said that if the trade deal happens with India it will happen towards the end of the year.

Trump's remarks came after extensive talks with Prime Minister Narendra Modi on a range of issues, including trade and investment. At a joint statement after talks, Modi also said that they agreed to start negotiations for a "big trade deal" and hoped hope that it will yield good results in mutual interest.

President Trump, in turn, said, "Our teams have made tremendous progress on a comprehensive trade agreement and I'm optimistic we can reach a deal that will be of great importance to both countries. "Since I took office, US exports to India are up nearly 60 per cent and exports of high-quality American energy have grown by 500 per cent," the US President said.

Modi said India and the US are committed to openness and fair and balanced trade in the economic sector. "Our bilateral trade has witnessed double-digit growth in the last three years, and has also become more balanced...As far as bilateral trade is concerned, there have been positive talks between our commerce ministers," Modi said.

"President Trump and I have agreed today that the understanding that has been reached between our commerce ministers, let our teams make it legal. We have also agreed to start negotiations for a big trade deal. We hope that it will yield good results in mutual interest," he said. Later, addressing a press conference in the evening, Trump said if the trade deal with India happens, it will be by the end of the year and if it doesn't "we'll do something else" and it will be very good.

He once again complained of "large amount of tariffs" imposed by India on his country's products. "India is probably the highest tariff nation. I think you have to pay the highest tariff when you deal with India. Harley Davidson has to pay tremendous tariffs when they send motorcycles here and when India sends to us, there is virtually no tariff. That's unfair and we are working it out," he said.

A joint statement issued in the night said Prime Minister Modi and President Trump recognised the increasing importance of the trade and investment dimension of the Indo-US relationship, and the need for long-term trade stability that will benefit both the American and Indian economies. "They agreed to promptly conclude the ongoing negotiations, which they hope can become phase one of a comprehensive bilateral trade agreement that reflects the true ambition and full potential of the bilateral commercial relations, advancing prosperity, investment, and job creation in both countries," the stament said.

Briefing reporters on the Trump visit, Foreign Secretary Harsh Vardhan Shringla said the two leaders have decided to conclude the ongoing discussions on bilateral trade as soon as possible and give it legal framework and the text for it can be finalised with legal vetting. "The two leaders also decided to move towards what was referred to as big deal in the trade sector," he said.

Shringla said adverse trade imbalance is also gradually eroding with greater amount of acquisitions they are making in areas of oil and gas and purchase of commercial aircraft.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)