‘Howdy Modi’: Is PM Modi going to give trade concessions to US?

What are US President Donald Trump and Prime Minister Narendra Modi going to discuss on the sidelines of the much publicised ‘Howdy Modi!’ event?

Well, it is difficult to say at this point what is on the agenda but if one goes by Texas Senator John Cornyn, there could be “some announcement” by President Trump.

“I won't be surprised if there is some announcement by President Trump today, hopefully we will be able to sort out the trade differences,” John Cornyn was reported as saying ahead of the event.

What could be that announcement? Will India give in to the US demands of providing “equitable and reasonable access" to its markets?

In June this year, US President Donald Trump terminated India's designation as a beneficiary developing nation under the key GSP (Generalised System of Preference) trade programme.

The White House in a statement had said that India failed to assure the US that it would provide "equitable and reasonable access" to its markets, which was why the Trump administration had taken the action.

Trump had intimated his intention in a letter the US Congress on March 4, wherein he wrote that he intended to end preferential trade treatment for India because “after intensive engagement between the US and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India.”

India was the largest beneficiary of the programme in 2017 with $5.6 billion worth of exports to the US being given duty-free status.

Nevertheless, the two leaders said they were looking forward to meeting each other at the event being organised by the Texas India Forum.

President Trump, as he emplaned for Houston from Washington DC, tweeted: “Will be in Houston to be with my friend. Will be a great day in Texas!” #HowdyModi

He also said: “Look forward to being with our great India loving community!”

President Trump has to face an election next year and the Indian American community has a significant presence in the country. It is naturally in Trump’s interests to flatter the community ahead of the elections.

In response, PM Modi said that it was going to be a great day.

“It surely will be a great day! Looking forward to meeting you very soon @realDonaldTrump”.

Besides,a mega $7.5 billion energy deal is also said to be on the anvil between the two nations.