India-US Trade Policy Forum

India-US Trade Policy Forum- Relevance for UPSC Exam

• GS Paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

India-US Trade Policy Forum- Context

• Recently, the U.S-India Trade Policy Forum (also known as the Trade Policy Forum) was held after a gap of four years.
• The 12^thS-India Trade Policy Forum was co-chaired by the Indian Commerce and Industry, and U.S. Trade Representative.
• The U.S-India Trade Policy Forum resolved to take economic ties between the two countries to the ‘next high level’ and exchanged views on ‘potential targeted tariff reductions’.

The Editorial Analysis- Breaking the Ice

India-US Trade Policy Forum– Key Outcomes

• At India-US Trade Policy Forum, they decided to activate working groups of the Trade Policy Forum (TPF) on agriculture, non-agriculture goods, services, investment, and intellectual property.
  • Various working groups of the Trade Policy Forum (TPF) are expected to meet frequently and address issues of mutual concern in a mutually beneficial manner.
  • Objective: to deliver tangible benefits to farmers and businesses of both countries by resolving outstanding market access issues.
• Mutual market access: India-US Trade Policy Forum has decided to forge an agreement to-
  • facilitate U.S. market access for mangoes, grapes, and pomegranates, pomegranate arils from India, and
  • ensure access to the Indian market to cherries, pork/pork products and alfalfa hay for animal feed from the United States.
• Totalisation Agreement: Both sides at India-US Trade Policy Forum agreed on the significance of negotiating a Social Security Totalization Agreement in the interest of workers from both sides.
  • Totalisation Agreement proposed under India-US Trade Policy Forum would allow workers from both countries to move their retirement savings.
  • Lack of Totalisation Agreement particularly affects Indian IT workers in the U.S. who lose billions of dollars in statutory U.S. social security contributions that they cannot repatriate home.
• Collaboration on Multilateral forums: India-US Trade Policy Forum discussed collaboration and constructive engagement in various multilateral trade bodies including the WTO and the G20.
  • The collaboration aims for achieving a shared vision of a transparent, rules-based global trading system among market economies and democracies.
  • India-US Trade Policy Forum also decided to find mutually agreed solutions on outstanding WTO disputes between the two countries.
• Ethanol supply: At India-U.S. Trade Policy Forum, the U.S. indicated an interest in supplying ethanol to India for its goal of 20% ethanol blending with petrol by 2025.
• On health: the two sides at India-U.S. Trade Policy Forum decided to partner with allies in developing a secure pharmaceutical manufacturing base and de-risk global supply chains in such critical sectors as health.
• On services: the India-U.S. Trade Policy Forum discussed ways in which legal, nursing and accountancy services can facilitate growth in trade and investment.
  • The India-U.S. Trade Policy Forum also sought to work together on electronic payment services and the digital economy.
• On visa policy: the India-U.S. Trade Policy Forum decided to continue engaging on visa issues to facilitate the movement of professionals, skilled workers, experts, and scientific personnel.

Sydney Dialogue

Also, read

Sharing is caring!