Is PM Modi`s ASEAN Summit Skip A Sign Of Domestic Focus Or Stalled US Trade Talks?

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Prime Minister Narendra Modi won’t likely go to Kuala Lumpur for the next week’s ASEAN Summit because of domestic commitments and no concrete outcome on a key trade agreement with the US, sources privy to the development said.

The main meeting, scheduled between October 26-28, was earlier considered a possible site for a high-level meeting between PM Modi and US President Donald Trump amidst trade tensions.

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Interlocutors, who wished to remain anonymous, said that the Prime Minister’s immediate concern lies domestically.

State Elections: The government’s most immediate priority is the upcoming state assembly elections in Bihar.

Chhath Puja: The Prime Minister is also likely to attend the festivities during Chhath Puja next week, a major festival of the region.

Though an official word on the extent of participation is awaited, another individual privy to the agenda confirmed that PM Modi will participate in the India-ASEAN Summit on October 26 through virtual teleconferencing. External Affairs Minister S. Jaishankar will represent India at the East Asia Summit on October 27-28.

Trade Talks Stall High-Level Meeting

The failure to achieve a clinching breakthrough in the India-US bilateral trade agreement talks was one of the key reasons for skipping the visit.

Talks have persisted, such as the visit by Commerce Secretary Rajesh Agrawal to the US last week and a phone call between PM Modi and President Trump on Tuesday. But these interactions have brought no hints of a quick breakthrough.

US President Trump is scheduled to visit Malaysia on October 26 before proceeding to Japan for a follow-up visit.

Trade Tensions And Restarted Diplomacy

India-US trade relations have been tense since President Trump levied a 25% reciprocal tariff on Indian products and a 25% punitive duty on Russian oil buys. These tariffs heavily weighed against the viability of Indian products in the US market, following which trade talks were suspended in late August.

Negotiations officially resumed as US Assistant Trade Representative Brendan Lynch met with Indian officials in New Delhi in mid-September. Modi and Trump have also spoken on the phone three times since then, and US Ambassador-designate Sergio Gor visited New Delhi in a bid to repair relations.

Conflicting Accounts On Tuesday’s Call

President Trump informed journalists on Wednesday that he and Modi had spoken about trade in their telephone call on Tuesday, repeating his assertion that India would not “buy much oil from Russia.”

PM Modi’s social media announcement of the call, however, made no reference to trade. He said President Trump had sent Diwali greetings and that the two countries were one against terrorism in all its forms.

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