Amid trade talks, PM speaks to Trump, says will work together, Pg1

Key Highlights:

• PM Modi and President Trump spoke about enhancing bilateral trade and reviewed the India-US Comprehensive Global Strategic Partnership.
• This was their third phone conversation since the US imposed 50% tariffs on Indian goods.
• A US trade delegation visited New Delhi for talks aimed at resolving the India-US trade stalemate.
• The India-US trade relationship is nearing $200 billion annually but lacks a formal framework.

Detailed Insights:

• The US has taken a firm stance on trade imbalances, leading to tariffs on Indian goods, while India seeks an easing of these duties before any agreement.
• US farm lobbies are pushing for India to increase purchases of American row crops, as the US aims to diversify exports away from China.
• India's data localization policies and draft e-commerce rules are viewed by US companies as obstacles, while India prioritizes skilled mobility, despite it being outside the formal trade mandate.
• Energy cooperation is a potential area for agreement, with India's imports of Russian oil highlighting the need for energy diversification, and a trade pact could facilitate larger purchases of US energy.
• India has shifted its trade strategy towards bilateral and trilateral deals, reflecting a "China+1" strategy, aligning with the US to secure its geoeconomic future.
• A first-stage trade package is likely to focus on areas with high payoff and manageable domestic costs, with future efforts aimed at co-designing standards for critical technologies and supply chains.

Key Concepts Involved:

• Bilateral Trade: Trade between two countries.
• Tariffs: Taxes imposed on imported goods.
• Data Localization: The practice of storing data within a country's borders.