Modi, Trump to meet: Kashmir and trade will be on table

  1. Indian Prime Minister will meet US President on the sidelines of the G-7 Summit in France.
  2. The two leaders are expected to hold talks to resolve the differences over trade and investment.
  3. India and the United States has differences over issues such as trade imbalance between India and the US.India’s exports to the U.S. in 2017-18 stood at $47.9 billion while imports were at $26.7 billion.The trade balance is in favour of India.
  4. India has also imposed long pending retaliatory tariffs on 29 US products after US had withdrawn Generalized system of preferences(GSP) for Indian exporters.
  5. GSP is a preferential tariff system extended by developed countries to developing countries.It is a preferential arrangement in the sense that it allows concessional low/zero tariff imports from developing countries.
  6. India has also dragged the U.S. to the World Trade Organisation (WTO) dispute settlement mechanism over the imposition of import duties on steel and aluminium.
  7. Further,there are other issues such as (a)India’s new rules on e-commerce that affected firms such as Amazon and Walmart and (b)Data localisation rules which forced foreign companies to store their data locally.