Trade talks stuck as U.S. presses gas, aircraft sales to India

Trade talks stuck as U.S. presses gas, aircraft sales to India

NEWS

1. 2+2 dialogue and india’s concern

Defense issues

2. USA will impose CAATSA (countering American adversaries through sanctions act) if India buys S400 triumph missile system from Russia. India wants waiver for this deal.

3. COMCASA: (Communications Compatibility and Security Agreement) is a foundational defence pact which is expected to be signed, it would be a key highlight of the meeting; however there are concerns about this deal in defence sector.

4. Talks on sharing intelligence on movement of maritime activities and vessels in the Indo-Pacific region are on desk.

5. The two sides are also likely to announce an Indian liaison officer at the US Naval Forces Central Command (NAVCENT) in Bahrain. NAVCENT’s area of responsibility includes the Red Sea, Gulf of Oman, Persian Gulf, and Arabian Sea. Comprising fleet of USA.

6. Formal recognition of STA-1(STRATEGIC TRADE  AUTHORISATION) to India by USA,  paving the way for high-technology product sales to New Delhi, particularly in civil space and defence sectors.

7. Hotline between defence minister of India and US defence secretary could also be established.

Important issues concerning india

8. H1B visa reduction to Indian workers in USA.

9. US proposal to review generalized system of preferences.

10. Imposition of tariffs specially on steel and aluminum by American government.

11. A draft agreement by USA to wipe out trade deficit with India that is around $23 billion, by compulsory import of civilian aircraft and natural gas.

12. Impositions of sanctions on India by US under CAATSA act due to import of crude oil from Iran. India imports 24% of its total crude oil demand from Iran.