MODI IN US

Trump urges Modi to fix US trade deficit with India

modi-trump-reuters US President Donald Trump shakes hands with Prime Minister Narendra Modi as they begin a meeting at the Oval Office of the White House in Washington | Reuters

Presses for removal of export barriers; says US looking forward to export more energy

US President Donald Trump urged Prime Minister Narendra Modi to do more to relax Indian trade barriers during talks in which both leaders took great pains to stress the importance of a strong US-Indian relationship.

At a closely watched first meeting between the two, Trump and Modi appeared to get along well. Modi pulled in Trump for a bear hug on the stage as the cameras rolled in the Rose Garden.

“I deeply appreciate your strong commitment to the enhancement of our bilateral relations," Modi told him. "I am sure that under your leadership a mutually beneficial strategic partnership will gain new strength, new positivity, and will reach new heights.”

Trump was also warm but made clear he sees a need for more balance in the US-India trade relationship in keeping with his campaign promise to expand American exports and create more jobs at home. Last year the US trade deficit with India neared $31 billion.

Trump said he would like a trading relationship that is "fair and reciprocal."

"It is important that barriers be removed to the export of US goods into your markets and that we reduce our trade deficit with your country," he said.

Trump said he was pleased about an Indian airline’s recent order of 100 new American planes and that the United States looked forward to exporting more energy, including major long-term contracts to purchase American natural gas.

These energy contracts "are being negotiated and we will sign—trying to get the price up a little bit," Trump said.

Modi came to Washington looking to revitalise a relationship that thrived under former President Barack Obama but has appeared to flag as Trump courted India's rival China in an effort to persuade Beijing to do more to rein in North Korea.

Modi effusively praised Trump, hailing his “vast and successful experience in the business world” and “great leadership” for US-India ties, which he said should “lend an aggressive and forward looking agenda to our relations.”

He said he had invited Trump to India but no time was given for a visit.

Modi harked back to Trump's "Make America Great Again" campaign slogan to stress that his agenda for his country was little different than Trump's.

"I am sure that the convergence of my vision for "New India" and President Trump’s vision for making America great again will add new dimensions to our cooperation," he said.

Trump did not mention US differences with India on immigration and the Paris climate accord.

"The future of our partnership has never looked brighter," Trump said as both leaders underscored the importance of the defence and security relationship.

As they met, a Pentagon agency said the US State Department has approved the possible sale to India of a Boeing C-17 transport aircraft with an estimated cost of $366 million.

On Friday, US defence contractor General Atomics Aeronautical Systems said the United States had cleared the way for the sale of a naval variant of its Predator drone to India, a deal that would be worth more than $2 billion.

The United States has become the leading supplier of defence equipment to India, signing contracts worth more than $15 billion since 2008.

On Monday evening, Trump and Modi had a working dinner, the first time Trump has played host to a foreign dignitary at a White House dinner.

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