New Delhi, Aug 23: India has certain “red lines” in its negotiations for a trade deal with the US and it will stand firm in protecting the interests of farmers and small producers, External Affairs Minister S Jaishankar said on Saturday, days before additional American tariffs on Indian goods are set to come into effect.
Jaishankar also sounded critical of the US for targeting New Delhi’s energy ties with Moscow and wondered why the same yardstick has not been applied to China and the European Union, the largest importer of Russian crude oil and Russian LNG, respectively.
The external affairs minister, speaking at the Economic Times World Leaders Forum, also made it clear that India does not accept mediation in its relations with Pakistan and there has been a national consensus over it for more than 50 years.
His comments came in the face of President Donald Trump’s repeated claims that he defused the India-Pakistan military conflict in May.
Jaishankar flagged trade and tariff, procurement of Russian crude oil and Washington’s assertion on the conflict as the three main issues India has with the US at present.
The relations between New Delhi and Washington are on a downturn after Trump doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duty for India’s purchase of Russian crude oil.
The 25 per cent tariff has already come into effect and additional levies are due from August 27.
Jaishankar said that Trump’s way of dealing with the world is a very major departure from the traditional way of doing so and the entire world is facing this issue.
The external affairs minister said trade is “really the major issue” between the two countries, adding India has certain “red lines” and that the negotiations for the proposed trade are underway.
The negotiations for a bilateral trade deal between the two countries hit a roadblock after India refused to open up its agricultural and dairy sectors.
The external affairs minister also responded to repeated allegations by Trump administration officials that India is “profiteering” by buying discounted Russian crude oil and then selling refined petroleum products at premium prices in Europe and other places.
“It’s funny to have people who work for a pro-business American administration accusing other people of doing business,” Jaishankar said.
“That’s really curious. If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. But Europe buys, America buys, so you don’t like it, don’t buy it,” he said.
Jaishankar listed India’s procurement of Russian crude oil as the second key issue in its ties with the US.
“The second issue, in a way, is being presented as an oil issue. But why I say it’s being presented is because the same arguments which have been used to target India have not been applied to the largest oil importer, which is China, has not been applied to the largest LNG importer, which is the European Union,” he said.
“And when people say we are funding the war or putting money in the coffers of (President Vladimir) Putin… the Russia-European Union trade is bigger than India-Russia trade. So is Europe not putting money into Putin’s coffers,” he asked.
Jaishankar acknowledged that India’s procurement of Russian crude oil has gone up in the last few years and noted that it is driven by national interests.
“That’s our right. In my business, we would say that’s what strategic autonomy is about,” he said.
“We are buying (Russian) oil to stabilise the oil market. Yes, it is in our national interest. We have never pretended otherwise, but we also say it is in global interest.”
The external affairs minister indicated that Washington’s claim on the India-Pakistan conflict is the third issue New Delhi has with the US.
“The third issue pertains to our own region, which is the issue of mediating. Since the 1970s, for more than 50 years now, there is a national consensus in this country that we do not accept mediation in our relations with Pakistan,” he said.
The external affairs minister also rejected observations that India’s relations with China are improving in view of the strain in New Delhi-Washington ties.
“I think it would be a mistaken analysis to try and crunch everything and make it into an integrated response to a very specific situation,” he said. (PTI)
