Modi and Kerry: Will the twain ever meet?

July 31, 2014, 11:41 am IST in Cash Flow | India | TOI

US secretary of state, John Kerry, will lead the team that starts talks on Thursday with members of the Indian government. The talks are a part of the fifth Indo-US strategic dialogue.

It is the first high level meeting between two governments after Narendra Modi became prime minister. Expectations are high that it will mark the start of a revival in ties between two countries. However, signs thus far suggest it would be best to hold back expectations as the positions of two sides on key issues differ significantly.

Penny Pritzker, US commerce secretary, is a part of Kerry’s delegation. She has identified revival of economic ties between the two countries as the focus area. US interest in giving economic ties a boost comes from business opportunities that will soon be generated from India’s attempt to build new infrastructure. Companies from China, Japan and Europe, among others, are looking for opportunities in this area. It is safe to assume that all companies looking for opportunities will have their governments batting for them.

This is where US is probably going to find it tougher than other countries. As the world’s most influential country, the US does take the lead in playing a leadership role in multilateral bodies. One of them is World Trade Organization, where US and India have positions that are poles apart.

Simply put, US feels India’s current position on the Bali agenda of WTO undermines the organization.

Pritzker didn’t pull her punches. She was critical of India’s stand in the run-up to Thursday’s strategic dialogue.

“I am very disappointed in India taking a step back from the agreement and it will have significant ramifications in terms of Doha round and India needs to recognize that,” she said.

This is not the first time the two sides have disagreed in a forum such as WTO. It is unlikely to be the last time they disagree.

Unlike Japan, for example, the US is more likely to have a prickly relationship with India. As a country which for historical reasons tends to assume leadership mantle in international bodies, it is more likely to find itself at odds with an India.

Pritzker’s comments ahead of the strategic dialogue show why we should have low expectations. This dialogue sets the stage for Modi’s scheduled visit to US later in the year. Yet, there are seemingly irreconcilable differences even before the first meeting. If WTO’s Bali agenda breaks down, many countries will have a right to feel upset. But it is unlikely that any of them save US will go public with their frustration. Going public does cast a shadow on relationships. Don’t expect miracles.

DISCLAIMER : Views expressed above are the author's own.
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