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U.S. Trade Report flags challenges from ‘Make in India’

Posted on March 4, 2021 by admin1  301

In News –India’s trade-restrictive policies have inhibited the potential of the bilateral trade relationship between India and the US according to the 2021 President’s Trade Agenda and 2020 Annual Report.

  • It is an annual report submitted by the U.S. Trade Representative (USTR) to Congress.

Key Highlights of the report

  • According to the report, the United Kingdom remained the largest supplier of services, accounting for USD 62.3 billion of total US services imports in 2019, India was the sixth largest with USD 29.7 billion after Canada (USD 38.6 billion), Japan (USD 35.8 billion), Germany (USD 34.9 billion) and Mexico (USD 29.8 billion).
  • The USTR highlighted the proposal by India and South Africa to waive the implementation, application, and enforcement of commitments on patents, copyright, industrial designs, and undisclosed information (including trade secrets) under the WTO TRIPS Agreement.
  • Issues –
    • Indian emphasis on import substitution through a “Make in India” campaign has epitomized the challenges facing the bilateral trade relationship because India’s large market, economic growth, and progress towards development make it an essential market for many U.S. exporters.
    • The US has sought increased access for its companies to India’s dairy and poultry markets, wants medical devices to be freed from government-regulated pricing, and resolve issues regarding IT goods.

 

  • Steps –
    • The U.S. tried to resolve “long-standing market access impediments affecting U.S. exporters” with India during 2020.
    • Subsequent to the suspension of India’s GSP benefits, the US and India resumed intensive work in the fall of 2019 aimed at producing a package of meaningful market access outcomes, and this engagement continued throughout 2020.
      • The objectives of the US in this negotiation included the resolution of various non-tariff barriers, targeted reduction of certain Indian tariffs, and other market access improvements.
  • The United States also engaged with India on an ongoing basis throughout 2020 in response to specific concerns affecting the full range of pressing bilateral trade issues, including intellectual property (IP) protection and enforcement, policy development affecting electronic commerce and digital trade, and market access for agricultural and non-agricultural goods and services
  • India -US Trade Relations: The U.S. is India’s largest trading partner, goods and services combined.
    • Bilateral trade in goods and services grew by more than 10% per annum over the past two years to reach US$ 142 billion in 2018

Make In India

  • The Make in India initiative was launched by the Prime Minister in September 2014 as part of a wider set of nation-building initiatives.
  • It is being led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry.
  • It is devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation.
  • The initiative basically promises the investors – both domestic and overseas – a conducive environment to turn the 125 crore population strong-India a manufacturing hub and something that will also create job opportunities.

 

Generalized System of Preferences (GSP)

 

  • It is a US trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for products from designated beneficiary countries and territories.
  •  It provides opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty.
  • It was established by the Trade Act of 1974.

Source: TH

 
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