India-US Diplomacy in Focus: Jaishankar, Rubio Tackle Global Conflicts and Trade Policies
- India International Affairs North America South Asia
Shreya Naskar- 0
- 3 minutes read
In a significant development, Indian Minister of External Affairs S Jaishankar and US Secretary of State Marco Rubio engaged in a crucial phone conversation on April 7, discussing pressing global issues and strengthening bilateral ties. This high-level dialogue marks a pivotal moment in India-US relations, particularly in the context of the ongoing trade tensions between the US and its global trading partners.
Key Discussion Points
– Global Crises: Jaishankar and Rubio exchanged perspectives on the Indo-Pacific, Indian Sub-continent, Europe, Middle East/West Asia, and the Caribbean, highlighting the complexities of the current global landscape.
– Bilateral Trade Agreement: Both leaders emphasized the importance of concluding a bilateral trade agreement at the earliest, aiming to mitigate the impact of tariffs imposed by the US on global trading partners.
– Trade Tensions: The conversation comes on the heels of US President Donald Trump’s announcement of reciprocal tariffs, prompting India to open talks with the US administration to conclude a bilateral trade agreement as soon as possible.
India’s Response to US Tariffs
According to reports, India is not planning to impose counter-tariffs on the US but is instead seeking a trade deal. Officials in New Delhi are studying the impact of tariff hikes on export sectors and may consider increasing support to exporters under the export promotion scheme announced in the budget. The US-China trade war has significant implications for global trade, with China announcing a 34% tariff on all US imports starting April 10. In contrast, Indonesia has chosen not to retaliate, while Vietnam is taking a different approach by agreeing to cut its tariffs to zero as part of a potential trade deal.
India-Middle East-Europe Economic Corridor (IMEC)
The IMEC, a proposed economic corridor, aims to become a cornerstone of global connectivity. However, the ongoing conflict in West Asia has resulted in disruptions to trade flows, strengthening the case for de-risking. External Affairs Minister S Jaishankar emphasized the importance of IMEC, stating that it could play a vital role in promoting regional trade and economic cooperation. The Jaishankar-Rubio conversation highlights the growing importance of India-US relations in the current global context. As trade tensions continue to escalate, both nations are working towards a bilateral trade agreement that could have far-reaching implications for global trade and economic cooperation. With the IMEC and other regional initiatives gaining momentum, the future of international trade and diplomacy looks increasingly complex and interconnected.
