NEW DELHI: US Secretary of State John Kerry told Narendra Modi that India’s refusal to ratify a key WTO trade deal sent the wrong message, as he met the country’s prime minister for the first time on Friday.

Mr Kerry 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 to streamline customs procedures and boost global commerce.

During the meeting — aimed at breaking the ice with a leader once shunned by Washington — Mr Kerry told the prime minister that India’s stance was at odds with the latter’s 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.”

But Mr Modi said that developed nations needed to display greater understanding of the difficulties faced by the developing world in meeting the needs of their poor populations.

“The prime minister emphasised the need for developed countries to understand the challenges of poverty in developing countries and their governments’ responsibilities in addressing them..,” a statement issued by Modi’s office said.

The Press Trust of India news agency, meanwhile, quoted commerce ministry officials as saying India remained committed to the deal as long as its demands for concessions on its anti-poverty food stockpiling deal were met.

Earlier, Mr Kerry said the United States wanted to “try to really take the relationship to a new place”.

US officials have signalled they do not want to create a new rift by renewing past concerns about Mr Modi’s track record on minority rights.

Mr Kerry trod lightly on the issue on Thursday, saying the two democracies shared the belief “every citizen, no matter their background, no matter their beliefs, can make their full contribution”.

“From women’s rights to minority rights, there is room to go further for both of us,” Mr Kerry said.

Published in Dawn, Aug 2nd , 2014