India, U.S. commit to linking economies across sectors

What is the news?

India and the United States held the twelfth Ministerial-level meeting of the India-United States Trade Policy Forum (TPF) in New Delhi.

What is the India-United States Trade Policy Forum (TPF)?

India-United States TPF is a premier forum to resolve trade and investment issues between the two countries.

Chaired by: The forum is co-chaired by the Indian Minister of Commerce and Industry and U.S. Trade Representative.

Focus Groups: The forum has five focus groups – agriculture, investment, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers

What are the key highlights of the meeting?

Bilateral Trade: The bilateral trade between India and the US stood at $80.5 billion in 2020-21. India has received $13.8 billion foreign direct investment from the US during 2020-21.

Mutual Market Access: The Forum has decided to sign an agreement to facilitate U.S. market access for mangoes, grapes, and pomegranates, pomegranate arils from India, and reciprocate with similar access in the Indian market to cherries, pork/pork products from the United States.

Restoration of GSP:  India has sought restoration of the GSP (Generalized System of Preferences) benefits by the U.S.

Totalisation Agreement: The countries have decided to negotiate a Social Security Totalisation Agreement. The totalisation agreement would allow workers from both countries to move their retirement savings. A lack of such an agreement particularly affects Indian IT workers in the USA, who lose billions of dollars in statutory U.S. social security contributions that they cannot repatriate home.

Ethanol Supply: US has expressed an interest in supplying ethanol to India for its goal of 20% ethanol blending with petrol by 2025.

Source: This post is based on the following articles 

“India, U.S. commit to linking economies across sectors” published in The Hindu on 23rd November 2021.

“India, US aim for specific Trade Policy Forum outcome by mid 2022” published in Business Standard on 23rd Nov.2021.

“India and United States Joint Statement on the Trade Policy Forum” published in PIB on 23rd Nov, 2021.