INDO – US TRADE TALKS

deepak mehto
By deepak mehto October 7, 2019 18:19

INDO – US TRADE TALKS: India and us on a cusp of reaching a mini trade deal.

Background

During Prime Minister Modi’s recent visit to the US, India and the US were unable to stitch together a mini trade deal despite intense last-minute negotiations but he sent out a message that India remains open for business and investment.

Agenda of the meeting

  •  Finalization of long pending issues and inking of trade deals in sectors where agreement has been made.

o   During minster’s previous visit mutual satisfactorily resolution has been reached on the pricing of the medical instruments.

  • Efforts to link investment with trade: both outward (e.g. Petronet’s investment in Texas) as well as an inward investment so as to take advantage of the lowering of corporate taxes. This will help Indian companies penetrate value chains.
  •  Agreeing on “Early harvest trade” to make it compatible with WTO rules.
  •  Working towards a mutual agreement

India’s demand and reservation

  • However, on ICT goods, India wants to fix a threshold price, beyond which it can levy customs duty on mobile phones, smartwatches, and telecom network equipment.
  • India wants the US to certify the dairy products originating from its soil to be certified “bovine free feed“citing domestic religious belief.
  • Restoration of GSP.

INDO - US TRADE TALKS

Finalization of agreement between India and Us

  •  India and the US agree to ship more goods as contentious issues like Harley Davidson and Indian mangoes have been solved.
  •  Understanding has been reached a high end, patented innovative heart stents and knee implants.
  • Partial Restoration of GSP as the US has agreed to provide preferential duty benefits.

Despite the package, Information technology, telecom goods, e-commerce, data privacy as well as the matter related to intellectual property rights need to be held separately. The India US Trade deal needs to be seen in wider strategic spectrum as seen in issues related to terrorism, J&K, and NSG membership than a mini trade deal

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deepak mehto
By deepak mehto October 7, 2019 18:19