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India's stance on WTO deal sends 'wrong message' Kerry tells Modi

When Kerry met Modi he hoped to revive a relationship clouded by mistrust; India's blocking of a trade pact casts doubt on his optimism

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US Secretary of State John Kerry told Narendra Modi that India's stance on a WTO trade deal sent the wrong message, as he met the country's new prime minister for the first time yesterday.

Kerry 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 those hopes, with India on Thursday blocking a major World Trade Organisation pact on customs procedures.

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During the meeting - aimed at breaking the ice with a leader once shunned by Washington - Kerry told 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," Kerry said.

"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."

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Modi told Kerry that while areas of difference would always exist, "what is critical is what we do to enhance and build on our trust".

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