The 13th US-India Trade Policy Forum was held in Washington on 11 January 2023. It was to take place last year, but was postponed by mutual agreement.
Trade, Investment, IPRs and Technology are crucial in Indo-American ties. The fact that the trade and investment relationship lags behind the galloping bilateral strategic ties is a cause for concern. Indeed, if not properly managed, this dossier of trade, investment and IPRs has the potential to imperil the larger strategic partnership between the US and India.
The Joint Statement issued after the latest Trade Policy Forum meeting is 6 pages long, indicating that there were serious discussions on all issues. A quick and preliminary assessment is given below:
1) Good discussion on a long list of issues.
(2) But no breakthroughs on restoration of GSP status for India, on removal of Steel and Aluminium duties (imposed punitively by the Trump Admin ) & India’s retaliatory duties, and on the disputes we have with each other in the WTO. These are necessary confidence building measures that must be taken by both sides without undue delay.
(3) One important outcome of the meeting is the setting up of a new Working Group on “Resilient Trade” which will deal with matters relating to trade facilitation, labour standards, environmental issues and regulatory practices/obstacles. This is welcome. These issues are sensitive for India. But the fact that they are being discussed is a good sign.
(4) Bilateral trade in goods and services was 160 billion dollars, it was agreed that this can be increased manifold.
(5) US and India to work together in the G 20 Trade and Investment Working Group.
(6) A lot of TBT and SPS issues sorted out or in the process of being sorted out.
(7) Visa issues and Totalization Agreement mentioned for possible resolution in the future.
(8) They ask officials of various Working Groups to meet quarterly and the Ministers agree to meet again by end 2023. This is again welcome. the November 2021 meeting took place after a gap of four years. This one after 14 months. A way has to be found for Ambassador Katherine Tai and Minister Goyal to meet twice a year: once virtually and once in person. That is the only way progress can be made.
This is a dossier that will also need the attention of President Biden and PM Modi at some point. Things like the GSP, lifting of punitive duties, withdrawing of disputes against each other in the WTO and issues like environment and digital trade will require a push from both leaders at the highest level.
Finally, India is still extending from time to time its Foreign Trade Policy decided for the period 2015-2020. It needs a brand new Foreign Trade Policy, suitably updated taking into account developments such as our ongoing negotiations on FTAs, our policy on digital trade and our approach to some of the new issues such as Labour Standards and Environment.
Diplomacy and Geopolitics 