New Delhi: US Secretary of Commerce Wilbur Ross has cancelled his visit to India owing to “inclement weather” — which led to the cancellation of his flight — and “other logistical issues”.
Ross was supposed to hold a trade dialogue with India’s Minister of Commerce and Industry Suresh Prabhu, and co-chair the India-US CEOs Forum with him.
“Due to inclement weather, technical problems that led to the cancellation of his flight, and other logistical issues, Secretary Ross regrets he is no longer able to attend the CEO Forum and Commercial Dialogue in person,” said an official familiar with the development.
Ross will, instead, participate “remotely”, and thanked the private sector and the Indian government for “their continued partnership as we further strengthen the ties between our two countries”.
Sources told ThePrint that Ross had to cancel his visit owing to America’s decision to withdraw the Generalised System of Preferences (GSP), which grants some Indian exports preferential or duty-free access into the American markets, as early as next week.
“This is going to have huge political impact for the Modi government at election time,” said an Indian official who refused to be identified.
This is the second high-level visit from US to India that has been cancelled recently — President Donald Trump was invited to be the chief guest at India’s Republic Day celebrations, but didn’t visit.
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Trade Policy Forum also in limbo
The India-US Trade Policy Forum (TPF) — an annual dialogue and the only one of its kind between India and the US — has also not met since 2017. This is because there are rising trade tensions between the countries over India’s policy stance in restricting foreign direct investment in e-commerce and insistence on data localisation, and the US’ imposition of tariff on Indian steel and aluminium products.
India has twice deferred the imposition of retaliatory tariffs on American steel and aluminium imports, over hope that the US may grant a waiver on this to India.
The TPF takes places between India’s Ministry of Commerce and Industry and the Office of the US Trade Representative (USTR). Robert Lighthizer, the current USTR, hasn’t visited India since he was given the role by Trump in May 2017. However, he has met minister Prabhu during the latter’s visit to Washington.
India currently enjoys a trade surplus of $21.27 billion with the US, according to 2017-18 data from the Ministry of Commerce and Industry.
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Unclear if this is an expression of unhappiness over the way Amazon and Walmart have been treated in the new e commerce policy.