Focus on resolving India-US trade issues: Jaishankar

India and the United States (US) should resolve their pending trade problems and “move on to something bigger” on the economic front by focusing on areas such as

India and the United States (US) should resolve their pending trade problems and “move on to something bigger” on the economic front by focusing on areas such as innovation and technology, external affairs minister S Jaishankar said on Wednesday.

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On the geo-political front, the minister said that the US has to learn to “work with a more multi-polar world with more plurilateral arrangements” and “go beyond the alliances which it has grown up [with] over the last two generations”, and suggested that India and the US together can shape the world.

Jaishankar made the remarks during a discussion at the India Ideas Summit organised by the US India Business Council (USIBC).

Speaking on the theme “Leading in times of crisis: Perspectives on US-India cooperation”, the minister side-stepped a question from the moderator, former US national security advisor Stephen Hadley, on whether the two countries should work towards a free trade agreement and noted that their discussions on trade in the last few years were dominated by “complaints”.

It is in the mutual interest of both sides to resolve pending problems and “move on to something bigger”, Jaishankar said. There is a much bigger connect between the two countries beyond trade, as they are already working together on issues such as maritime security, counter-terrorism, connectivity, how to respond to pandemics, and climate change.

Jaishankar, however, noted that going beyond the exchange of goods and a better investment climate and working together on innovation and technology will set the relationship apart. There is a need for “convergence on the big picture”, he added.

“I would give a lot of emphasis to resolving our trade problems [and] take the journey into a higher gear than it has been before. I do believe it’s very possible,” he said.

India and the US were unable to work out a mini trade deal before President Donald Trump’s visit in February due to differences on issues such as market access, tariffs and the data localisation policy.

Pointing to the need for the US to go beyond the alliances it has forged over the decades, Jaishankar said: “We have the ability today, by working together, to shape the world.” He added the two sides can strengthen their bilateral agenda while shaping the larger global agenda.

In the field of trade too, Jaishankar said, emerging and established players have different concerns amid the rebalancing of the global economy. While established players want the continuation of their advantages, they should be willing to accommodate the legitimate concerns of emerging players, he said.

“That harmonisation, how well we do that, is very important,” he said.

Jaishankar also noted the important of people-to-people contacts, saying the Indian American community in the US had grown from 3,000 in 1947 to more than four million. The community has added a new quality to the relationship and created bonding between the two societies that was centred round talent in economy, innovation and technology, he said. His remarks come in the wake of visa restrictions imposed by the US administration which substantially affect Indians.

Senator Mark Warner, who also participated in the discussion, highlighted the need to increase both trade and defence cooperation. He said the international leadership is being threatened by an aggressive Chinese Communist Party and President Xi Jinping. This threat is now playing out in the sphere of 5G, where Chinese standards, rules and protocols are dominating, he added.