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The long-awaited deal comes as both Delhi and Brussels contend with economic and geopolitical pressure from the US.
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The US federal agency says it will not play an immigration role at February's event in Milan-Cortina.
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The US president is sending border tsar Tom Homan to the city in an apparent shift in tone from the White House.
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Critics say the proposal could see even younger children becoming offenders as well as breaching children's rights.
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At least a dozen people have died in multiple US states possibly due to the storm, officials have said.