US and India working to build on gains from trade forum

What is the News?

Officials from US and India are looking at what can be achieved at this year’s U.S. India Trade Policy Forum(TPF) session, likely to be held in November,2022. 

What is the U.S. India Trade Policy Forum(TPF)?

Established in: 2005 and reconstituted in 2014.

Aim: To help smooth out differences in trade and economic policy and identify areas for trade and investment expansion.

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

What are the priority areas for India and the US in trade?

US Side: The United States wants greater access to the Indian market for medical devices as well as digital trade.

The U.S. wants to export ethanol and an associated animal feed ingredient called DDGS (Distillers’ Dried Grains with Solubles) to India. However, India has some sensitivity given that it has domestic ethanol producers.

Indian Side: India is keen on finalizing a Social Services Totalisation agreement – i.e., an agreement that will permit Indians temporarily working in the U.S. to reclaim what they pay into the U.S. system.

India also wants the resumption of Indian wild caught shrimp exports to the U.S. The U.S. law prohibits the import of wild caught shrimp and its derivative products if protected sea turtle species are harmed in the process. One way around this is to use Turtle Excluder Devices (TEDs) while fishing for shrimp; India views this as a technical barrier to trade.

India also wants to be reinstated as a beneficiary of the U.S.’s preferential market access program – the Generalized System of Preferences(GSP). 

Source: The post is based on the article “US and India working to build on gains from trade forum” published in The Hindu on 4th June 2022.