Highlights

• Foreign Secretary Vijay Gokhale arrived in the American capital on Wednesday for talks with senior U.S. officials ahead of the first India-U.S. 2+2 dialogue in Delhi in September.
• Both sides are encouraged by the buoyancy in bilateral ties in the last two weeks, soon after the postponement of the 2+2 dialogue that was scheduled for the first week of July in Washington.
• The Trump administration persuaded the U.S. Congress to pass legislation that could allow a waiver for India from anti-Russia third party sanctions, and eased control of exports to India, paving the way for further enhancement of defence trade between the countries.
• India has been granted the Strategic Trade Authorisation, or STA-1, status that placed it with a group of 36 countries, mostly NATO allies. Japan and South Korea are the only Asian countries in this group.
• The status allows for sale of more sensitive technologies to India than was earlier permitted.
• Indian Navy also participated in the Rim of Pacific Multinational Naval exercise last week.
• But trade negotiations between the two countries remain the Achilles Heel for bilateral ties.

The mid-July talks between India and the U.S. on outstanding trade disputes did not produce a deal as expected by observers. India had offered to amend its price control regime for medical equipment in return for America retaining India’s Generalized System of Preferences status in trade.

Source: The Hindu