After months of negotiations and speculations, India and the US have finally sealed a landmark trade deal. This much-awaited agreement marks a significant milestone in the bilateral relations of the two nations. The trade deal, worth $3 billion, was announced by President Donald Trump and Prime Minister Narendra Modi in a joint statement during Trump’s first official visit to India. As we celebrate this historic moment, let’s take a look back at the key moments that led to the announcement of this long-awaited trade deal.
2016: The Beginning of a Promising Partnership
The journey towards the trade deal began back in 2016, when PM Modi and President Barack Obama announced a “strategic and commercial partnership” between India and the US. This partnership aimed to deepen their economic ties and strengthen their cooperation in various sectors, including defense, energy, and technology.
2017: India and US Sign a Defense Agreement
In September 2017, India and the US signed a crucial defense pact, ‘Communications, Compatibility and Security Agreement’ (COMCASA), which allowed the transfer of critical high-end military technology from the US to India. This move was a significant step towards strengthening the defense ties between the two nations.
2018: The Trade Tensions Begin
In March 2018, President Trump imposed tariffs on steel and aluminum imports, which affected India’s exports to the US. This sparked trade tensions between the two nations, with India retaliating by imposing tariffs on 28 US products. This was seen as a setback in the bilateral relations of the two countries.
2019: The Tariffs Increase
In June 2019, President Trump announced that he was removing India’s special trade status, which allowed Indian goods to enter the US duty-free. This decision led to an increase in tariffs on Indian products, causing further strain in the trade relations between the two nations.
September 2019: The Meeting at the G7 Summit
The talks of a trade deal gained momentum again when PM Modi and President Trump held a bilateral meeting on the sidelines of the G7 summit in France. The two leaders discussed ways to resolve the trade issues and expressed their commitment to further strengthen the strategic partnership between India and the US.
October 2019: Negotiations Intensify
In October 2019, trade negotiators from both sides held several rounds of talks to iron out the differences and finalize the trade deal. The negotiations focused on various issues, including market access, tariffs, and intellectual property rights.
January 2020: The Delegation Visits India
In the first week of January 2020, a high-level US delegation, led by US Trade Representative Robert Lighthizer, visited India to discuss trade issues and finalize the deal. The delegation met with PM Modi and other top officials, paving the way for the final agreement.
February 2020: The Big Announcement
On February 25, 2020, President Trump announced the much-awaited trade deal between India and the US during his two-day visit to India. The $3 billion deal includes the sale of military equipment, including Apache and MH-60R helicopters to India. This agreement is expected to create thousands of jobs in the US and significantly boost India’s defense capabilities.
The Future Looks Bright
The trade deal between India and the US is not only a win-win situation for both nations but also marks a major step towards their shared goal of increasing bilateral trade to $500 billion. It will not only strengthen the economic ties but also pave the way for closer cooperation in various other sectors. This deal also sends a positive message to the world about the strong partnership between the two largest democracies in the world.
In conclusion, the timeline of key moments leading to the announcement of the India-US trade deal is a testament to the strong bond between the two nations. Along with the trade deal, the two leaders also reiterated their commitment to work together on various global issues, including countering terrorism and promoting regional stability. This agreement is a significant step towards a brighter and more prosperous future for both India and the US.
