TAA, GSP and removal of trade barriers may be discussed during Tai’s India visit next week
India is eager to obtain Trade Agreements Act-designated country status from the US and may seek the restoration of Generalized System of Preferences benefits. In return, the US may ask India to facilitate American exports and address issues such as market access, intellectual property rights, and e-commerce policies. The discussions will take place during US Trade Representative Katherine Tai's visit to India next week.
New Delhi India is keen to get the Trade Agreements Act-designated country status by the United States and may push Washington to restore the Generalised System of Preferences (GSP) benefits, while the US may ask New Delhi to facilitate American exports to bridge huge bilateral trade deficit during the US Trade Representative Katherine Tai’s India visit next week, two officials aware of the development said.
The USTR is visiting New Delhi from January 12-14, 2024 and is scheduled to meet external affairs minister S Jaishankar and commerce minister Piyush Goyal to discuss issues related to trade and investments, they said requesting anonymity. The US is India’s top export destination with $44.47 billion exports in the first seven months of FY24 (April-October 2023) and $24.88 billion imports from America in the same period.
“India wants the US to recognise it as a Trade Agreements Act (TAA)-designated country to further deepen ties between the two economies and boost trade and investment in an environment of mutual trust, which saw withdrawal of seven vexed disputes to benefit both partners,” the first official said. The six outstanding issues pending at the World Trade Organisation (WTO) were mutually resolved in June 2023 while the seventh and the last issue settled in September that year.
India’s status as one of the TAA-designated countries would help Indian businesses to sell their products to the US government, but such deals are often based on overall negotiations and reciprocity, the official said. There are also talks to restore the GSP benefits that the Trump administration withdrew from June 2019. GSPs are unilateral, non-reciprocal and non-discriminatory benefits extended by some developed countries to developing countries.
On the part of Washington, the USTR may ask India to provide greater market access for American agriculture and non-farm goods, protection of intellectual property rights, transparent e-commerce policy and encouraging digital trade, the second official said.
According to the office of the USTR, Tai is scheduled to meet Goyal on January 12 and later the two will co-chair the 14th ministerial-level meeting of the US-India Trade Policy Forum. Established in 2010, the trade policy forum plays an important role in strengthening and expanding the bilateral economic and trade relationship, it said in a statement.
“Under Ambassador Tai and Minister Goyal’s leadership, the Trade Policy Forum has helped remove trade barriers and facilitate cooperation on key issues. During this year’s meeting of the Trade Policy Forum, Ambassador Tai and Minister Goyal will discuss a broad set of issues to enhance the resiliency of the trade relationship, including agriculture, industrial products, services, and the protection of intellectual property, among other topics,” it added. The USTR will also meet EAM Jaishankar, it said.
Tai has appointments with society representatives, business leaders, and stakeholders to discuss the Biden administration’s engagement and commitment to fostering closer ties between the two countries on January 13, it said.
“The United States-India trade relationship continues to grow stronger and benefit both nations throughout the past year as Ambassador Tai and Minister Goyal reached several milestone agreements that deliver crucial market access for American farmers and producers, and high quality products to Indian consumers,” the statement said referring to a 70% reduction of the tariff on pecans, the removal of retaliatory tariffs on almonds, apples, chickpeas, lentils and walnuts, boric acid, and diagnostic reagents, and commitments for additional tariff reductions on frozen turkey, frozen duck, as well as fresh, frozen, dried, and processed blueberries and cranberries.