On November 23, 2021, India and the United States (US) held the 12th Ministerial-level meeting of the India-US Trade Policy Forum (TPF) in New Delhi. Minister of Commerce and Industry, Piyush Goyal and US Trade Representative (USTR) Katherine Tai relaunched the TPF and agreed to engage on issues which are affecting the trade between the two countries.
- The India-US Trade Policy Forum focuses on agriculture, investment, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers.
- The last meeting of the TPF was held in 2017.
Key Highlights:
i.India highlighted the importance of cooperation in the health sector and also in developing a secure pharmaceutical manufacturing base.
ii.India highlighted the significance of the restoration of Generalised System of Preferences (GSP) benefits to help industries from both sides in integrating their supply chain efficiently.
iii.India & US underlined the importance of the movement of professional and skilled workers, students, investors and business travellers between both the countries as it enhances bilateral economic and technological partnership.
Note:
i.The bilateral trade between India and the US is $80.5 billion in 2020-21. India has received $13. 8 billion foreign direct investment from the US during 2020-21
ii.While the bilateral trade in goods is around USD 80 billion in 2020 which is at the same level in the first quarters of 2021.
Focus Areas:
i.India and the US stressed on market access for mangoes and pomegranates, pomegranate arils from India, and cherries and alfalfa hay for animal feed from the US.
ii.They also discussed participation and collaboration of the private sector in building stronger linkages in critical sectors, including cyber space, semiconductors, Artificial Intelligence (AI), 5G, 6G and future generation telecommunications technology.
iii.They also agreed to resolve market access for grapes from India and pork/ pork products from the US.
iv.India and the US agreed on the significance of negotiating a Social Security Totalisation agreement in the interest of workers from both sides.
-Piyush Goyal meets US trade representative Katherine Tai
i.Commerce minister Piyush Goyal met with USTR Katherine Tai accompanied by Deputy USTR Sarah Bianchi.
ii.Tai & Bianchi participated in the United States-India Trade Policy Forum (TPF) and Bianchi also participated in a digital trade industry roundtable.
-Katherine Tai is on a two-day visit to India
i.USTR Katherine Tai is on a two-day visit to India. This is Tai’s first visit to India after she took over the office in March 2021.
ii.Ambassador Tai appreciated India for recently initiated economic reforms such as,
- Liberalization of Foreign Direct Investment (FDI) in the insurance sector
- Elimination of a retrospective provision in income tax, and launching of the “Single Window System” for facilitating investment.
- The reforms have enabled improvements in the business ecosystem and transparent means of market-oriented reforms.
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About United States (US)
President – Joe Biden
Capital – Washington DC
Currency – United States Dollar (USD)
