'Won't make China-like mistakes': US official on India trade deal
What's the story
The United States will prioritize its national interests in the proposed trade agreement with India, US Deputy Secretary of State Christopher Landau said. Speaking at the Raisina Dialogue in New Delhi, Landau said Washington has learned from its past economic engagement with China and will approach trade with India differently this time.
Statement
'Deal should be fair to our people'
"India should understand that we're not going to make the same mistakes...we made with China 20 years ago in terms of saying, oh, we're going to let you be able to develop all these markets, and then the next thing we know, you're beating us in a lot of commercial things," he said. "We're going to make sure that whatever we do, it's fair to our people, because, ultimately, we have to be accountable to our own people," he added.
Policy
America First does not mean America alone
At the same time, Landau clarified that "America First does not mean America alone," pointing out that the country can achieve its goals by collaborating with other nations. He went on to say that the Trump administration sees "national interest as a shared principle among sovereign states." "So just as President Trump wants to make America great again, he would expect the Prime Minister of India or other leaders to want to make their countries great again," he said.
Trade progress
Win-win situations in deepening cooperation with India
Landau said that the US sees several "win-win situations" in deepening cooperation with India. He reiterated Washington's commitment to strengthening ties with New Delhi, saying a bilateral trade deal was "almost at the finish line." Last month, India and the US reached a framework for an Interim Agreement on reciprocal trade and reaffirmed their commitment to broader US-India Bilateral Trade Agreement (BTA) negotiations.
Tariff changes
Proposed US-India trade deal includes strategic tariff reductions
The proposed US-India trade deal includes strategic tariff reductions. The US slashed its reciprocal tariff rate on Indian goods from 25% to 18%. It also removed a 25% punitive tariff imposed on India for purchasing Russian oil. In return, India has pledged to drastically cut down Russian crude oil imports and buy $500 billion worth of American energy, aircraft, and high-tech products over the next five years.