Kerry accuses Modi of ‘confused message’ over WTO deal

India's rejection of global trade facilitation agreement casts shadow over top US diplomat's first meeting with new Indian prime minister.

The US secretary of state John Kerry held his first meeting with the new Indian prime minister, Narendra Modi, in New Delhi on August 1, 2014. Press Information Bureau / Government of India / EPA

NEW DELHI // John Kerry told Narendra Modi that India’s stance on a crucial WTO trade deal sent the wrong message in his first meeting with the country’s new prime minister.

The US secretary of state has expressed optimism about expanding cooperation between the world’s two largest democracies during a visit aimed at reviving a relationship clouded by mistrust.

But a raft of disputes has cast a shadow over hopes for a warmer relationship, with India on Thursday blocking a major World Trade Organisation pact on customs procedures.

During the meeting – with a leader once shunned by Washington – Mr Kerry told Mr Modi India’s stance on the deal was at odds with his desire to open up the country’s economy.

“We note that the prime minister is very focused on his signal of open to business and creating opportunities and therefore the failure of implementing TFA (Trade Facilitation Agreement) sends a confusing signal and undermines that very message that he is seeking to send about India,” a US official quoted Mr Kerry as saying.

“While we understand India’s food security concerns, the trade facilitation agreement is one that will bring tremendous benefit, particularly to the world’s poor. India’s actions therefore are not in keeping with the prime minister’s vision.”

Mr Kerry urged India to work with the United States to move the WTO process forward.

The official also said Mr Modi told Mr Kerry that while areas of difference would always exist, “what is critical is what we do to enhance and build on our trust”.

Earlier, Mr Kerry said the United States wanted “try to really take the relationship to a new place”, following a series of diplomatic spats with India.

Washington has little relationship with Mr Modi, a Hindu nationalist who was refused a US visa in 2005 over allegations that he turned a blind eye to anti-Muslim riots as leader of Gujarat state.

The United States caught up with other Western nations during the election campaign, sending its ambassador to meet Mr Modi who since taking office has shown no signs of holding a grudge.

But US officials, who value frank and freewheeling relationships with foreign leaders, are unsure what to expect from Mr Modi who is known for his austere, solitary lifestyle and is not believed to be at ease in English.

Mr Modi is seen as a very different than his predecessor Manmohan Singh, whom Barack Obama had found a kinship.

Mr Kerry went ahead with the trip to India despite working around the clock to end the bloodshed in the Gaza Strip.

The United States has sought to put relations with India on firmer ground after the visa row and a crisis in December when US authorities arrested an Indian diplomat for allegedly mistreating her servant, infuriating New Delhi.

But new disputes have kept arising.

On Thursday, the WTO said that the 160-member body had failed to approve a landmark pact that would streamline global customs procedures.

India had stalled the pact as it pushed for the WTO to give the green light on the developing power’s stockpiling of subsidised food. India says the policy is vital to help the poor, but rich nations charge that the practice distorts global trade.

* Agence France-Presse