India and the US say their ties are strong despite the differences

New Delhi: India and the US on Wednesday agreed to work through their differences on trade, Iran and other issues, keeping the larger perspective of their strategic partnership in mind, even as New Delhi told the US that it would not cede ground on issues of national interest.

At the end of two hours of discussions between visiting US secretary of state Mike Pompeo and external affairs minister Subrahmanyam Jaishankar that covered trade, energy, defence and investment concerns, Jaishankar said the talks were “frank” and a reassurance of the “solidity of the relationship” between the two nations.

Pompeo, on his part, said the US regarded India as a friend and partner.

While it was apparent that the two sides agreed to find ways to resolve their trade disputes, India stood its ground on buying the S-400 missile defence system from Russia, saying New Delhi would be guided by national interest on the issue and expected Washington to understand this.

There were apparent differences on Iran, with Pompeo describing Tehran as the “world’s largest sponsor of terror” and Jaishankar speaking about both sides finding common ground on energy to ensure “predictable and affordable” supplies.

Pompeo arrived in New Delhi on Tuesday to lay the groundwork for a meeting between US President Donald Trump and Prime Minister Narendra Modi on the margins of the G20 Summit in Osaka on Friday. This is the first high-level visit from the US to India since Modi’s return to power.

Ties between the world’s oldest democracy and the largest democracy have been buffeted by a series of disputes, but Pompeo and Jaishankar expressed confidence that the two countries would be able to work around them. “India and the US have a strategic partnership that is based on deep and broad convergences... Obviously, there would be some issues on which we have our individual perspectives,” said Jaishankar.

On terrorism, Jaishankar thanked the US for its support to end cross-border terrorism emanating from Pakistan—a reference to the US pressing Islamabad to shut terrorist training camps and cut funding for terrorist groups. Pompeo said the US would continue to help India strengthen its capability to fight terrorism.

On trade, Jaishankar said India was committed to ensuring ease of doing business and a level playing field for foreign companies wishing to invest in Asia’s third-largest economy—something US firms have been complaining about. There were concerns about high tariffs and the trade deficit with the US as well as worries over recent moves by India to restrict e-commerce and the free flow of data. “My urging was that we take a constructive and pragmatic view of that. It is natural that you will have trade issues and I think the real test of our intentions is our ability to address them effectively,” said Jaishankar. He later said that in recent months discussions between the two countries on trade were perhaps not as effective as they should have been. “Both of us are leaving this meeting convinced that we both need to tell our governments that they need to try harder and make sure that the irritants are dissolved.”

Pompeo said the US wanted greater market access and removal of trade barriers. “Today, I address these differences in the spirit of friendship... we will keep working to resolve any economic disputes,” he said.

In response to a question on differences in trade and the S-400 missile defence system purchase from Russia, Pompeo said India and the US were “friends” and work together on issues. “On each of those issues, we had a chance to talk today and try and plot a path forward,” he said.

Jaishankar added a cautionary note, saying that defence cooperation between India and the US was an “encouraging” story of the past decade, in a reference to India ordering around $18 billion worth of US military hardware. “The key point here is that if that is to continue to grow, it is important that we display trust and confidence in each other,” he said, alluding to the US pushing India to drop the S-400 deal. Stating that India would follow its national interest, he said that given the strategic ties, the two sides should have the ability “to comprehend and appreciate the national interest of the other”.