Indo-US trade to be doubled in three years

Washington, June 23: Two-way trade between India and the United States is expected to double in the next three years and reach 50 billion dollars with both the nations endorsing several cooperative steps, including cutting down barriers to trade and investment.

This was decided at the third Ministerial-level meeting of the US-India Trade Policy Forum (TPF) here with US Trade Representative Susan C Schwab and visiting Indian Minister of Commerce and Industry Kamal Nath agreeing on a number of initiatives to strengthen and deepen the bilateral trade relationship.

With India already among the United States' fastest growing major bilateral trade relationships, the cooperative steps agreed upon between the minister and the trade representative would go a long way in enhancing trade and investment in both the countries.

Ambassador Schwab and Mr Nath also discussed the Doha negotiations, agreeing that the US and India share a commitment to conclude a successful, far reaching Doha Round by the end of 2006.

''Under the Trade Policy Forum we continue to make steady progress on key issues to improve bilateral trade and investment climate,'' said Ambassador Schwab adding ''We remain committed to doubling bilateral trade over the next three years, and improving the regulatory, customs and intellectual property protection climate is key.'' Mr Nath on his part, said, ''The Trade Policy Forum has, within a short time emerged as a very effective forum for the two sides to enhance bilateral trade and investment. It was encouraging to see both sides engaged in intensive discussions at the expert level on a variety of issues of mutual interest.''

The United States and India agreed to a number of actions, including cooperation on an action plan and technical assistance to promote innovation, creativity and technological advancement by providing a vibrant intellectual property rights (IPR) regime.

Both sides also agreed to initiate action on a Bilateral Infrastructure Investment Program that will focus on identifying investment opportunities, incentives and challenges in key infrastructural sectors. Both sides also reaffirmed the need to make steady progress to complete technical and operational steps to certify Indian mangoes for export to the US markets and that this issue remained a top priority.

Mr Nath and Mr Schwab also reviewed various other steps to address several sanitary and phytosanitary (SPS) issues, including Indian mango exports to the United States and US almond, wax,packed fruits and wheat exports to India.

The US and India also agreed to take a number of other steps which aim to make progress towards selecting participants for a working group on legal services to discuss market access and other relevant issues.

The two sides also agreed for continued discussions on tariff structures to facilitate wine and spirits trade and also held discussions on emissions standards for large motorcycles.

They also agreed to create a senior-level private sector adjunct to the Trade Policy Forum that will provide strategic direction, input and support to the Trade Policy Forum.

Later, addressing a press conference, Mr Nath said India has urged the United States and the European Union to evolve a compromise solution on agricultural trade to resume the stalled negotiations during the World Trade Organization. The compromise could come about particularly if the EU improves its offer on the table, he said.

He further said, ''First, I see in this negotiations that the EU and US must converge. And the EU must come forth with a better offer.'' The Minister added that developing countries want developed countries to eliminate agricultural subsidies in exchange for allowing more market access in other areas of trade.'' The Minister is expected to be in Geneva next week where WTO ministers are expected to meet for crucial talks to work out a mechanism for further negotiations on such key subjects as tariffs on agriculture and industrial products.

The US-India Trade Policy Forum is an institutional arrangement between the two governments to discuss trade and investment issues.

The Trade Policy Forum (TPF) was launched during the visit of Prime Minister Manmohan Singh to the US in July 2005.

So far three meetings have taken since the inaugural, ministerial session of the Forum held in November 2005 in New Delhi.

UNI