Bilateral trade policy was reinstituted between India and US on 23rd November 2021 at Delhi, to resolve and outstanding trade and investment issues over the next twelve months. It was co-chaired by commerce and industry minister Piyush Goyal and the US trade representative (USTR) Katherine Tai.
This forum was established in 2005. The 11th ministry level meeting which was four years ago last met on October 2017. The recently held forum, 12th ministry level meeting was focused on five important sectors agriculture, investments, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers.
The US is India’s largest trading partner, surpassing China. The US is also India’s biggest export market. The bilateral trade between the countries stood at USD 80.5 billion in 2020-21. India received USD 13. 8 billion foreign direct investment from the US during 2020-21.
POINTS DISCUSSED IN THE MEET.
The US agreed to work to complete on India’s request for table grapes access to the US and India agreed to work to finalize the mutually agreed export certificate to allow the import of US pork and pork products. The ministries discussed on ways to export mangoes, pomegranates and pomegranates arils from India and import cherries and alfalfa hay for animal feed from US.
India asked for restoration of the GSP (Generalized System of Preferences) which was removed during the Trump administration. India was the biggest beneficiary of GSP in 2018. Now, in Biden administration the US stated that the scheme could be “considered.”
The ministries also discussed on working to together on child labor and forced labor issues in the global supply chain. The ministers also agreed to work collaboratively under trade economic bodies like WTO, G20 and the OECD.
Acknowledging the significance of the secure supply chains and considering the strong collaboration between India and US in the field of health, they found it important to work on resilient supply chains in this sector.
The ministers also showed interest in developing a secure pharmaceutical manufacturing base for global supply chains.
The ministers have confidence that, frequent discussion under the forum will help in resolving trade and investment issues and other related concerns.
Minister Piyush Goyal believes that India with skilled labor and forever demanding domestic markets at affordable costs, when merged with the US innovation and investment will be a victorious partnership.
NOTE:
Bilateral trade – an exchange of goods between two nations promoting trade and investment. (Barter trade based on bilateral deals).
GSP (Generalised System of Preferences) – A preferential tariff system which provides tariff reduction on various products.
Example: EU’s GSP removes import duties from products coming into the EU market from vulnerable developing countries (India is a beneficiary of the EU's Standard GSP).
OECD (Organisation for Economic Co-operation and Development) – It is an international orgnisation of 37 democratic countries which discusses economic and social policy and support free-market economies. (India is now the 27th member.)
SOURCES.
Business standard, Shreya Nandi.
Hindustan Times, Joydeep Bose.
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