USTR Tai Signals Openness: Ready to Consider India’s Concerns Over Key Business Issues
Introduction
In a joint statement issued after the 14th Trade Policy Forum (TPF) meeting in New Delhi, India, the United States Trade Representative (USTR) Katherine Tai expressed willingness to consider India’s key concerns regarding various business issues. The meeting, co-chaired by the Indian Commerce Minister Piyush Goyal and USTR Tai, aimed to enhance the economic relationship between the two countries. The statement highlighted the commitment of both parties to address key trade matters and promote equity and reciprocity in their trade relationship.
Restoration of Generalized System of Preferences (GSP)
One of India’s key concerns raised during the TPF meeting was the restoration of the Generalized System of Preferences (GSP). The GSP is a program that allows developing countries to export certain goods to the United States duty-free. India had previously benefited from the GSP, but it was revoked in 2019. The joint statement indicated that the US is willing to consider India’s request for the restoration of the GSP, which would provide a significant boost to Indian exports.
Trade Agreements Act (TAA)-Designated Country Status
India also sought Trade Agreements Act (TAA)-designated country status, which would offer additional benefits for Indian exports to the United States. The joint statement mentioned that the US is open to considering India’s request for TAA-designated country status. This designation would further facilitate trade between the two nations and promote a more favorable business environment.
Easier Visa Rules for Professionals
Improving visa rules for professionals was another concern raised by India during the TPF meeting. The joint statement highlighted the US’s willingness to explore easier visa rules for Indian professionals. This development would not only enhance the mobility of skilled workers between the two countries but also strengthen bilateral economic ties.
Resolution of Social Security Issues
Addressing social security issues was also a priority for India. The joint statement mentioned that the US is ready to engage in dialogue to resolve these concerns. This resolution would provide clarity and certainty for Indian workers in the US, ensuring that their social security benefits are protected.
Expansion of Exports
India emphasized the importance of expanding its exports to the United States. The joint statement outlined the US’s willingness to consider the export of Indian marine products, agricultural items, medicines, and medical devices. This expansion of exports would open up new opportunities for Indian businesses and contribute to the growth of bilateral trade.
Strengthening Intellectual Property Rights (IPR) Regime
In return for India’s concerns, the US raised the issue of strengthening the Intellectual Property Rights (IPR) regime. The joint statement indicated that India is willing to reciprocate by considering the US’s demand for strengthening IPR protection. This collaboration would provide a more robust framework for protecting intellectual property rights and foster innovation and creativity.
Easing Tariff and Non-Tariff Barriers
The US also expressed the need for easing tariff and non-tariff barriers on agriculture and industrial products, including IT hardware, computers, laptops, and servers. India agreed to consider this demand, which would facilitate smoother trade in these sectors. Both countries recognized the significance of technical regulations, such as Quality Control Orders (QCOs), and pledged to ensure that they do not create unnecessary barriers to trade.
Quality Control Orders (QCOs)
India recently issued hundreds of Quality Control Orders (QCOs) and introduced stringent quality norms for various items, including electric fans, freezers, aluminum cans, and plywood. QCOs are non-discriminatory and compliant with World Trade Organization (WTO) regulations. They allow a country to enforce its standards to protect human, animal, or plant health, prevent unfair trade practices, and ensure national security. The joint statement acknowledged the importance of QCOs in maintaining the quality and safety of traded goods.
Bilateral Trade Growth and Economic Relationship
The joint statement highlighted the robust growth of India-US bilateral trade in goods and services, which continued to rise despite the global trade challenges. The statement estimated that the bilateral trade between the two countries likely surpassed $200 billion in 2023. This growth reflects the strengthening economic relationship between India and the US, driven by mutual cooperation and trade facilitation measures.
Collaboration on Supply Chain Resilience
During the meeting, the US Trade Representative Katherine Tai raised concerns about India’s new import requirements for computers, tablets, and servers. Indian Commerce Minister Piyush Goyal emphasized that these measures were taken to safeguard national security interests. However, both countries expressed a willingness to collaborate on ensuring supply chain resilience in the IT sector. This collaboration would aim to strike a balance between security concerns and promoting a conducive business environment.
Professional Services and Skilled Workers
The joint statement acknowledged the importance of professional services in catalyzing bilateral trade between India and the US. Both countries recognized that the movement of professional and skilled workers, students, investors, and business visitors contributes significantly to the economic and technological partnership. India raised concerns about visa processing time periods for business visitors and requested the US to expedite the process. The statement emphasized the need to continue discussions on promoting engagement in professional services and addressing issues related to the recognition of professional qualifications and experience.
Conclusion
The joint statement issued after the 14th Trade Policy Forum (TPF) meeting between India and the United States reflects a positive and constructive approach toward addressing key business issues. The US has shown willingness to consider India’s concerns regarding the restoration of the Generalized System of Preferences (GSP), TAA-designated country status, easier visa rules, resolution of social security issues, and expanding exports. In return, India is open to strengthening the Intellectual Property Rights (IPR) regime, easing tariff and non-tariff barriers, and collaborating on supply chain resilience. This commitment to dialogue and cooperation paves the way for further enhancing the economic relationship between the two countries, fostering trade growth, and promoting mutual prosperity.