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'Howdy Modi' likely to clinch a trade deal

Howdy Modi likely to clinch a trade deal

Washington/New Delhi - A deal between the world's most populous democracies would be a welcome victory for Trump.



By Reuters

Published: Sat 21 Sep 2019, 10:00 PM

Last updated: Sun 22 Sep 2019, 12:54 AM

The United States and India are racing to negotiate a limited trade deal that US President Donald Trump and Indian Prime Minister Narendra Modi can sign at the UN General Assembly in New York at the end of September, people familiar with the talks said
A deal between the world's most populous democracies would be a welcome victory for Trump, whose administration has made little headway negotiating an end to its prolonged trade war with China.
The deal under discussion with India would lower some tariffs on US produce and restore preferential treatment for some Indian exports to the United States, the sources said.
Trump and Modi will meet this Sunday in Houston at an Indian-American rally dubbed "Howdy Modi!" in a 50,000-seat stadium - a sign of their warming relations, which are contributing to expectations for a "mini-deal".
"There's a push to get something done with India, with an eye for UNGA," said a Washington-based source familiar with the discussions.
US-India trade relations have been fraught. Trump has repeatedly complained about India's high tariff rates, including a 50 per cent tariff on Harley-Davidson motorcycles. The United States has also taken issue with India's new investment rules on e-commerce that limit how companies like Amazon.com Inc and Walmart-backed Flipkart can do business in a rapidly growing online market set to touch $200 billion by 2027.


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