India offers U.S. dairy, duck entrance in bid for fugitive trade understanding with Trump

NEW DELHI/WASHINGTON (Reuters) – India has charity to partially open adult a ornithology and dairy markets in a bid for a singular trade understanding during U.S. President Donald Trump’s initial central revisit to a republic this month, people informed with a long talks say.

India, a world’s largest milk-producing nation, has traditionally limited dairy imports to strengthen a livelihoods of 80 million farming households concerned in a industry.

But Prime Minister Narendra Modi is perplexing to lift all a stops for a U.S. president’s Feb. 24-25 visit, directed during rebuilding holds between a world’s largest democracies.

In 2019, Trump dangling India’s special trade nomination that antiquated behind to 1970s, after Modi put cost caps on medical devices, such as cardiac stents and knee implants, and introduced new information localization mandate and e-commerce restrictions.

Trump’s outing to India has lifted hopes that he would revive some of a country’s U.S. trade preferences, in sell for tariff reductions and other concessions.

The United States is India’s second-largest trade partner after China, and shared products and services trade climbed to a record $142.6 billion in 2018. The United States had a $23.2 billion products trade necessity in 2019 with India, a 9th largest trade partner in goods.

India has charity to concede imports of U.S. duck legs, turkey and furnish such as blueberries and cherries, Indian supervision sources said, and has charity to cut tariffs on duck legs from 100% to 25%. U.S. negotiators wish that tariff cut to 10%. The Modi supervision is also charity to concede some entrance to India’s dairy market, though with a 5% tariff and quotas, a sources said. But dairy imports would need a certificate they are not subsequent from animals that have consumed feeds that embody inner organs, blood dish or tissues of ruminants.

New Delhi has also charity to reduce a 50% tariffs on really vast motorcycles done by Harley-Davidson (HOG.N), a taxation that was a sole nuisance for Trump, who has labeled India a “tariff king.” The change would be mostly mystic since few such motorcycles are sole in India.

Trump will be feted in Modi’s home state of Gujarat, afterwards reason talks in New Delhi and attend a accepting that a hosts have betrothed will be bigger than a one orderly for former boss Barack Obama in 2015.

ENOUGH FOR LIGHTHIZER?

But it is distant from transparent either India’s offers will be adequate to prove U.S. Trade Representative Robert Lighthizer, who canceled skeleton for a outing to India this week. Instead, he has hold write talks with Indian Commerce Minister Piyush Goyal.

The U.S. dairy attention remained doubtful on Thursday that a viable understanding is during hand.

“We’re always looking for marketplace access, though in terms of India, as of currently I’m not wakeful of any genuine swell going on,” pronounced Michael Dykes, boss of a International Dairy Foods Association and a member of USTR’s rural trade process advisory committee.

Dykes pronounced a U.S. dairy attention was looking for entrance in viable blurb quantities.

A USTR orator and India’s trade method did not respond to requests for comment. PRIVACY LAW COMPLICATIONS

An Indian council row is reviewing a breeze information remoteness law that imposes formidable controls over cross-border information flows and gives a supervision powers to find user information from companies.

It is not transparent either it will be passed, or in what form, though a possibilities have weakened here U.S. companies and could lift correspondence mandate for Google (GOOG.O), Amazon.com Inc (AMZN.O), and Facebook (FB.O).

The breeze law is not partial of a trade discussions, Indian officials say, since a emanate is too formidable to solve during a same time.

“The remoteness and localization square will be lifted exclusively and in unison with a trade discussions,” pronounced a Washington-based source with believe of a U.S. administration’s thinking. Trump on Tuesday was neutral about sealing a trade understanding before his visit. “If we can make a right deal, we’ll do it,” he told reporters. Two U.S. sources pronounced swell had been done on due alterations to a medical device cost caps. India’s new import tariffs on medical devices, walnuts, toys, wiring and other products on Feb. 1 astounded U.S. negotiators, however.. The new tariffs were directed during China, that also creates medical devices, according to an Indian supervision source. “We have to strengthen a marketplace and a companies,” a source said.

Reporting by Sanjeev Miglani, Neha Dasgupta and Aditya Kalra in New Delhi, and David Lawder in Washington; Additional stating by Rupam Nair in Mumbai; Editing by Heather Timmons and Daniel Wallis

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