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This Article is From Jun 28, 2017

Modi’s U.S. Visit Was Underwhelming. Here’s How It Could Be Different.

Modi’s U.S. Visit Was Underwhelming. Here’s  How It Could Be Different.
(Source: BloombergQuint)

One may be forgiven for not realizing the Prime Minister of the world's largest free market democracy visited the President of the world's most powerful democracy. Media coverage in the United States, in the 24 hours prior to the tête-à-tête between Messrs Modi and Trump, was scant. On the big day itself, June 26, the American press was abuzz with the U.S. Supreme Court decision to uphold the Muslim travel ban.

One must be forgiven for being underwhelmed by the outcome of the June 26 meetings between the two Twitter fans. Indeed, with India's Goods and Services Tax (GST) effective July 1, one must query whether the Indian taxpayer got her money's worth from the trip.

To be sure, on June 24, Trump set the right tone with a tweet calling Modi a “true friend.” Thereafter, however, they didn't meditate on the definition of “true friendship,” nor on how its meaning translates into an itinerary. Rather, they parlayed, parsed a list of issues, and parted.

There is a difference between “true friendship” and a mutuality of interests.

Hard headed realists focus on the latter and produce agendas. They seek an identity of ends, and preferably means, too.

Confusing motion with progress, they oversell past deals as new news.

Ironically, they ignore at the peril of the nations they represent the reality that today's interest-based infatuation may be tomorrow's betrayal.

Holistic statesmen take the long view. They foresee as inevitable and acknowledge disagreements over ends, means, or both. They labor for breakthroughs to broaden and deepen an enduring relationship, to create a trust in perpetuity. Shared values are the assets in the trust, yielding a return in the form of friendship.

Five Days In November 1961: JFK and Panditji

President John F Kennedy and Prime Minister Jawaharlal Nehru understood the difference, as Ambassador's Journal (1969), the account by JFK's Ambassador on Delhi's Shantipath, the brilliant economist John Kenneth Galbraith, shows. JFK personally picked up Panditji on November 6 at the Newport, Rhode Island Naval Air Station, in the Presidential yacht, the Honey Fitz, and sailed him by the famed, gilded-age mansions, quipping “I want you to see how the average American lives.” During their five days together, November 6-10, 1961, they met not only in the Oval Office, but also at India's Embassy in Washington, D.C.

Guess what they and Ambassador Galbraith dealt with? The same underlying issues, albeit cast in different contexts, familiar to President Trump and Prime Minister Modi: defense and economics.

On Defense:

  • ‘Communist terror' in Laos and Vietnam, and Panditji's counsel against sending American combat forces to Indochina.
  • Pakistan, which (as Galbraith put it) was “unhappy over the allotment of time to India as opposed to Pakistan” that the First Lady, Jackie Kennedy, was planning on her March 1962 trip.
  • ‘Communist China' and ‘the relation of innocence to isolationism.'

On Economics:

  • Steel, particularly the possible use of American-made steel in the Bokaro mill.
  • Food security, and the apparent diversion of PL-480 donations to Indian stores.
  • Sugar, specifically, a decrease in the U.S. tariff rate quota (TRQ) for Indian imports.
  • Britain's entry into the European Common Market in exchange for across-the-board tariff cuts, and the possible launch of the ‘Kennedy Round' of multilateral trade talks under the General Agreement on Tariffs and Trade (GATT).

Less than Five Hours in June 2017: DJT and Modiji

So, what happened during the 4 hours and 25 minutes (from 15:35 to 20:00 Eastern Time) that Messrs Modi and Trump shared? They conversed about interests, asserting an alignment on their top two agenda items, defense and economics.

On Defense:

India bought $19 billion worth of Sea Guardian MQ-9B Unmanned Aerial Systems (i.e., drones for surveillance of the Indian Ocean, across which Chinese ships traverse and under which Chinese subs lurk from their new base in Djibouti), Apache attack helicopters, and C-17 aircraft. America lobbied India to buy more ordnance, namely, F-16 and F/A-18 fighter jets.

The June 26 White House Fact Sheet, entitled “The United States and India – Prosperity Through Partnership,” proclaimed the deal would “support thousands of United States jobs.” Maybe the more accurate sub-title is ‘American Prosperity Through Indian Procurement.'

The Fact Sheet could have been issued on June 23.

That's because the sales essentially were set before the trip. Indeed, the drone manufacturer announced the Trump Administration authorized them on the Friday before the Prime Minister arrived. That's also because the Fact Sheet noted...

Exactly why is an institutional structure (the DTTI) that “remains” in place and met two months ago, and a pre-planned, “annual” naval exercise, new news?

Maybe an answer is Modi's appearance at the White House was what lawyers call a ‘condition precedent' for (something that must happen before) performance of the drone sales contract, more DTTI meetings, and the Malabar naval exercises can occur. Maybe another answer is his appearance had symbolic value.

Modi and Trump agreed to fight harder and closer against what Trump called ‘radical Islamic terrorism.'

That us-versus-them characterization works for the Alt-Right in both democracies.

How many times must it be said there is nothing ‘Islamic' about ‘terrorism'? Yet, how accurate is it to avoid saying candidly what is or should be known: though Pakistan has suffered grievously as a victim of terrorism, it is not on par with India in fighting violent extremist organizations through educational and military means, and thus is not yet a “true friend” of India?

On Economics:

The Fact Sheet declared a shared commitment to “free and fair trade.” Lawyers recognize the elasticity of that phrase.

‘Free' trade allows either side to demand the other drop its bound Most-Favored Nation tariffs to below its actually-applied duty rates. ‘Fair' trade permits either side to impose on the other anti-dumping and countervailing duties. Whole-hearted commitment to ‘free' trade would suggest a bilateral free trade agreement, which this columnist indeed will suggest. Serious attention to ‘fair' trade would address labor, environmental, and women's rights, as did the Trans Pacific Partnership, which India could join, as this columnist already has suggested.

So, what trade deals did the Fact Sheet announce? First, India's SpiceJet Ltd. agreed to buy 100 new Boeing 737MAX-8s, for a total of 205 planes valued at more than $20 billion.

Whoops! That SpiceJet deal was done earlier in 2017, but at least it supports 130,000 American jobs.

Second, the two countries signed the World Trade Organization's Trade Facilitation Agreement (TFA).

Whoops, that's not new news either! The TFA was completed in December 2013.

Yes, 2013, WTO Ministerial Conference in Bali, and took effect on 22 February 2017. Ditto for the ballyhooed gas deals.

What would have been new news was a deal on H-1B visas. No mention of them.

Instead, India agreed to give Ivanka Trump a visa to lead the U.S. delegation to the Global Entrepreneurship Summit.

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