March 5, 2008 India, US to Double
Trade to $60 bn
by 2008 End By Arun Kumar
Washington
India and the US have set the goal of doubling their trade to about
$60 billion by the end of 2008 while agreeing to begin exploratory
talks on a possible bilateral investment treaty.
The goal is set out in the Bush administration's 2008 Trade Policy
Agenda and the 2007 Annual Trade Report to the US Congress released
here Tuesday.
Though trade has expanded rapidly, the current total amount of
bilateral trade is not consistent with the size and potential of
both the US and Indian economies, and both governments agree that
trade and investment flows should be greater, the report said.
Noteworthy developments in 2007 included finalizing arrangements for
Indian mangoes to enter the US market for the first time, and
agreement to initiate exploratory discussions in early 2008 on a
possible bilateral investment treaty.
Another development in 2007 in the bilateral US-India trade
relationship was the creation of a Private Sector Advisory Group (PSAG).
The group's key purpose is to provide strategic recommendations and
insights to the India Trade Policy Forum (TPF).
The discussions under the TPF, which is part of the overall economic
dialogue between India and the US, cover bilateral trade and related
issues and also address multilateral issues such as the ongoing
World Trade Organization (WTO) Doha Development Round negotiations.
The membership of the PSAG includes trade experts and
representatives of private sector organizations in the US and India
with in-depth knowledge of international economic and trade policy.
The group will provide US Trade Representative (USTR) Susan C.
Schwab and Indian Minister of Commerce and Industry Kamal Nath with
analyses and recommendations for potential building blocks for
bilateral economic relationship.
Commensurate with India's dynamic and growing economy, the bilateral
agenda continued to expand with respect to the significant
opportunities for bilateral trade that US and Indian companies are
aggressively pursuing, as well as the challenges US investors
continue to face as India gradually opens its markets.
However, India continues to limit market access in various sectors,
including through high taxes and tariffs, non-transparent
procedures, discriminatory treatment of imports, and non-tariff
barriers, said the report.
Noting the two countries completed another year of active dialogue
on trade policy in 2007, the report said India is working to improve
its protection and enforcement of intellectual property rights.
"We continue to work with the government of India to address issues
related to India's copyright law and patent law, protection of
undisclosed pharmaceutical test or other data, as well as high
levels of piracy, including book piracy, and counterfeiting," it
said.
The USTR's efforts included the identification of new areas for
cooperation, including with regard to India's tariff and tax regime,
intellectual property rights, investment climate and regulatory
hurdles.
As part of their trade dialogue, Schwab and Kamal Nath convened the
fourth ministerial-level meeting of the TPF in April 2007. Through
regular dialogue under the TPF, the US and India seek to remove
impediments to bilateral trade by anticipating potential trade
problems and jointly resolving concerns early.
The TPF serves as the umbrella for five focus groups: Agriculture,
Tariff and Non-Tariff Barriers, Services, Investment, and Innovation
and Creativity (in particular intellectual property rights issues).
Deputy USTR Karan Bhatia and Indian Commerce Secretary Gopal Pillai
oversaw ongoing focus group discussions throughout 2007 to address
priority issues such as foreign direct investment caps, intellectual
property rights protection, telecommunications policy and market
access for a wide range of manufactured and agricultural products
and services.
Schwab and Kamal Nath met on several other occasions in 2007. They
participated in the US-India Economic Dialogue and US-India CEO
Forum events held in New York City in September.
These events included discussions among US and Indian Cabinet-level
and other senior government officials focused on trade and economic
affairs.
Top government officials from both countries also met with CEOs from
major US and Indian corporations with the goal of reviewing
progress, and building momentum for our bilateral trade and
investment relationship.
Schwab and Kamal Nath also met a number of times in the context of
the Doha Development Round negotiations in an effort to find common
ground in the pursuit of an ambitious outcome.
Multilaterally too, the US continues to lead efforts towards
concluding an ambitious Doha Development Round, the report said.
Concluding an ambitious Doha Round is President George Bush's top
trade negotiating priority and will generate economic growth through
new trade flows in agriculture, industrial goods and services -
helping to lift millions of people in developing counties out of
poverty, it said.
"The administration realizes that a window of opportunity exists to
conclude the Doha Round this year and looks forward to working with
our trading partners to achieve the ambitious and balanced outcome
that will be necessary for a successful agreement," the report said.
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