WTO shadow hangs over Kerry-Swaraj dialogue.

NEW DELHI: The WTO cliffhanger in Geneva on trade facilitation talks overshadowed the India-US strategic dialogue here on Thursday, though the US held out the hope for a last-minute deal.

At the end of a day-long dialogue which covered a gamut of issues from security to energy to community colleges to Af-Pak, foreign minister Sushma Swaraj and US secretary of state John Kerry said they were working towards a "revitalized" relationship. Kerry said they "had a lot of homework" ahead of them to achieve "specifics" for PM Narendra Modi's trip to the US in September.

The message from the US side was that they were out to make friends again. This was the clear sense from the discussions, said sources present at the talks. Even though Swaraj raised the issue of the NSA snooping and the immigration bill, there was no rancour or combativeness in the discussions. Two key meetings in the coming weeks — on counter-terrorism and homeland security — are expected to reaffirm the close cooperation.

A joint statement issued at the end of the dialogue said, "They agreed to have their central authorities meet to discuss ways to improve mutual legal assistance and extradition processes. They also agreed to work towards greater cooperation in cyber security and reducing cybercrime."

No big announcement was expected from this dialogue, because this is seen as a preparation for the summit. Kerry was also preoccupied — he thanked Swaraj for allowing him to break away during the dialogue to take several "must do" phone calls, as the US tries to help stitch a ceasefire in the Middle East.

On the US immigration bill issue, much to the relief of India, Kerry said Obama may support amending some aspects of the bill. Swaraj told him that the bill in its current form, even though passed by Senate, was going to give a very negative signal to Indian IT companies. The bill seeks to encourage local talent by putting a cap on number of visas given to foreigners.

Although both sides tried to gloss over it, the WTO decision will provide the necessary atmosphere. Kerry met finance minister Arun Jaitley and commerce minister Nirmala Sitharaman on Thursday morning before meeting Swaraj. The conversation there was all about finding a solution to the trade facilitation issue currently being discussed in Geneva.

During the meetings, officials said, India stuck to its stance that it will not agree to a trade facilitation agreement without its concerns related to food subsidy being met. "The US told us that there will be an assurance that our concerns will be addressed. But given that the US is pushing for economic and trade agreements such as the Trans Pacific Partnership, they will pocket the trade facilitation agreement at WTO and then just ignore our demand," said a top-ranking Indian official.

Commerce and trade will occupy front and centre of the recast US-India relationship, as both countries expand commercial dialogue and a trade policy forum. It is in keeping with the Modi government's commitment to economic growth. Swaraj said, "We would like a greater US presence in our economy."

Kerry kept the focus on global trade though, telling journalists at a joint press conference afterwards, "Bali can provide food security. We don't dismiss India's concerns but we think we can find a way while keeping faith with the Bali agreement."

US commerce secretary Penny Pritzker, accompanying Kerry, told a TV channel, "I am an optimist, I am hopeful that within the period of today... there is a common ground that is found."

The meeting held out hope that US nuclear plants could work in India despite the problems of the nuclear liability law. "Both sides urged NPCIL and US companies Westinghouse and General Electric-Hitachi to expedite the necessary work to conclude pricing and contractual details. They looked forward to advancing the government-to-government dialogue and facilitating the establishment of US-built nuclear power plants in India."

A corridor to southeast Asia through Myanmar is a goal for the US-India-Japan trilateral grouping. "They emphasized the need for India, the United States and Japan to work together to build transport and trade connectivity between South Asia and ASEAN, via Myanmar, including by developing economic corridors," said the joint statement.

Questioned about whether India would adhere to western sanctions on Russia, Swaraj gave an evasive reply which translated into a negative. This being her first big performance with a visiting dignitary, Swaraj was enthusiastic. Even though she was careful to read from a script of answers, Swaraj was happy even to answer questions not directed to her.

Source : timesofindia.indiatimes.com