Modi misses chance to push for US trade deal as Trump leaves G-7

Indian Prime Minister Narendra Modi had no opportunity to push for a US trade deal with Donald Trump after the American president left the Group of Seven leaders’ summit early, a potential setback for New Delhi as recent tariff negotiations hit hurdles, according to Bloomberg.

Modi was expected to hold a bilateral meeting with Trump on the sidelines of the G-7 meeting in Canada this week. Trump said Monday he was leaving the summit a day early because of the unfolding tensions in the Middle East.

A Trump-Modi meeting was widely expected to take place this week to give much-needed political direction to trade negotiators as they race to conclude a deal ahead of a July 9 deadline when higher US tariffs take effect. US and Indian trade officials have hardened their positions in recent talks, with India’s restrictions on genetically modified crops emerging as one of the key sticking points.

“A meeting would have been helpful” to clarify the trade deal, said Harsh Pant, a lecturer in international relations at King’s College London and vice president of the New Delhi-based think tank Observer Research Foundation. Negotiating with Trump is difficult, especially now when the president has other pressing concerns, he said. It’s unclear if India is a priority for the US given the latest developments, he added.

India isn’t a member of the G-7 but Modi was invited by Canadian Prime Minister Mark Carney to attend the leaders’ summit in Kananaskis given the country’s size and importance as a major developing economy. Indian officials had previously indicated Modi wouldn’t attend the G-7.

Trump held a bilateral meeting with Japanese Prime Minister Shigeru Ishiba on Monday, but failed to reach an agreement on a trade package. The US leader also met with UK Prime Minister Keir Starmer and signed a document as a follow-up on the trade framework agreed in May.

A bilateral meeting with Trump wouldn’t have been without its hazards for Modi. The US leader has repeatedly said the US had mediated a ceasefire between India and Pakistan following last month’s military conflict that brought the two South Asian neighbors to the brink of war. Trump has also insisted that he used trade as a negotiating tool to clinch a peace deal, comments disputed by Indian officials.

Modi is expected to hold a bilateral meeting with Carney on the sidelines of the G-7 meeting, where the two leaders may announce a new initiative to combat cross-border crimes. The Indian prime minister is also expected to meet with leaders from Germany, Ukraine and Italy.

The Indian leader had a stopover in Cyprus for a state visit on Monday en route to Canada, and will visit Croatia on Wednesday on his way back, according to an official schedule.