Indian Prime Minister Narendra Modi, left, and U.S. President Donald Trump speak during a bilateral meeting in Biarritz, France, on Aug. 26, 2019, on the third day of the annual G-7 summit. The two countries are close to a short-term trade deal, but a long-term pact is an entirely different proposition.
The United States' trade war with China grabs all the headlines, but U.S. President Donald Trump is also bearing down on another major Asian economy: India. In June, Trump accused the Indian government of failing to provide "equitable and reasonable market access" and stripped New Delhi of its benefits under the Generalized System of Preferences, which enables India to export certain goods at a reduced tariff rate. Indian Prime Minister Narendra Modi's administration retaliated by slapping tariffs on 28 U.S. goods. While the sides could soon clinch a short-term trade deal, the United States and India will have several outstanding issues to address before they finalize a more comprehensive pact. With the United States demanding that India reduce its bilateral trade surplus, open its economy to more U.S. agricultural products and go easier on U.S. technology giants, the countries remain far apart on a longer-term deal....
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