TOKYO -- India is stymieing efforts to craft multilateral trade pacts, much to the dismay of international officials who had hoped Prime Minister Narendra Modi would opt for openness over protectionism.

"The nightmare continues," a Japanese trade negotiator said after a meeting of the World Trade Organization's General Council in Geneva on Oct. 21. The "nightmare" began at a council meeting at the end of July, when the Indian government abruptly withdrew its support for the organization's Trade Facilitation Agreement. Sources alleged that the Indian trade minister even ignored phone calls from WTO Director-General Roberto Azevedo.

The agreement is designed to simplify customs clearance procedures and otherwise smooth trade pathways. Some estimate it would produce some $1 trillion worth of economic benefits. In a meeting on the Indonesian island of Bali late last year, 160 countries, including India, agreed to sign the deal. For the WTO, finalizing the pact would be a step toward reviving the stalled Doha Round talks on tariff cuts.

Modi, who took office in May, has cultivated a reputation as a reformer. But when it comes to trade, his Bharatiya Janata Party government is reluctant to let down its guard. The official word on why India pulled out of the Trade Facilitation Agreement was that the decision to sign was made by the previous Indian National Congress government, and that issues related to agricultural subsidies have not been resolved. Some other countries' representatives see it differently. They feel they already compromised by agreeing to a four-year moratorium on reviewing government subsidies on food reserves for the poor -- a window the Modi government could have used to soften domestic opposition to the deal.

The South Asian country also took the wind out of a meeting on the proposed Regional Comprehensive Economic Partnership in late August. At the last minute, India announced that it would not attend the conference in Naypyitaw, Myanmar's capital. The RCEP, as envisioned, would slash trade tariffs between India, Japan, China, South Korea, Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations. Some participants want to see the number of products subject to tariffs cut by 80% to 90%. India says it is unwilling to go beyond 40%, including items on which duties would only be lowered, not abolished.

The Naypyitaw meeting failed to produce a target for tariff removal. "We should not have included India in the RCEP negotiation framework in the first place," one Japanese official said. Some of the participants are talking about arranging a deal without India.

Political considerations

What explains the gap between Modi's reformist image and his reluctance to lower trade barriers?

In the general election in May, Modi's BJP secured a majority in the lower house of India's parliament. In the upper house, however, the party controls just a quarter of the seats. This means its political footing is not as solid as it might look.

Upper house members in India are selected by state assemblies, so the central government feels pressure to heed state governments' wishes. The BJP's poor showing in state assembly elections in August only increased the pressure to pander.

"The Indian government must solidify its power base at home before it can start acting flexibly in trade negotiations," said Shotaro Kumagai at the Japan Research Institute. This process "will take five to 10 years," the researcher added. Indian stock prices have risen 30% over the past year, with investors welcoming Modi and his initiatives to strengthen the country's economy. But anyone expecting immediate change in the country's trade policy is likely to be disappointed.

For now, India's stance could create some awkward diplomatic moments. One came during Modi's visit to Japan. "It is regrettable that the WTO's Trade Facilitation Agreement was not signed," Japanese Prime Minister Shinzo Abe told Modi during a reception in Tokyo on Sept. 1. Given the generally cooperative tone of the visit and the leaders' shared interests, such as checking China, the comment stood out all the more. According to sources who were there, Modi simply ignored Abe's remark and changed the subject.

But Modi is walking a fine line. To combat growing youth unemployment, he is promoting a "Make in India" campaign, encouraging global manufacturers to come and set up shop in his country. At the same time, he seems willing to risk international isolation by resisting trade liberalization.