JOIN USIn its first major diplomatic engagement with Prime Minister Narendra Modi’s government this week, the United States (US) is all set to focus on growing trade disputes.
Top US officials are likely to press New Delhi hard to open up the economy further for foreign capital inflow, tighten Intellectual Property Right (IPR) protection regime and end subsidies that stifle competition.
The US Secretary of State John Kerry and External Affairs Minister Sushma Swaraj will co-chair the fifth India-America strategic dialogue in New Delhi on Thursday.
The US Secretary of Commerce Penny Pritzker will also take part in the strategic dialogue and hold meetings with Finance Minister Arun Jaitley and Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman to explore ways to narrow differences on a host of issues related to bilateral trade and economic ties.
The fifth India-US strategic dialogue will prepare the ground for Modi’s visit to the US on September 30.
A day before leaving Washington DC for a tour of New Delhi and Bangalore, Kerry said that it was time for the US to renew its ties with the new Indian government, with a “new set of opportunities, new possibilities”.
He, however, also flagged US concerns on India’s trade policies. “If India’s government delivers on its plans to support greater space for private initiative, if it creates greater openness for capital flows, if it limits subsidies that stifle competition, if it provides strong intellectual property rights, believe me, even more American companies will come to India,” he said at an event in the Centre for American Progress in Washington DC.
Kerry’s comments were apparently aimed at reminding the new government the promises Modi had made while campaigning for the Lok Sabha polls for speedy reforms to spur economic growth. US-based companies have been complaining about the “discriminatory trade practices” of India.
Though the change of regime in New Delhi triggered hope for change of policies, the US was disappointed when India recently made attempts to block a proposed Trade Facilitation Protocol, demanding that the World Trade Organisation (WTO) should not adopt it till a permanent solution on public stockholding for food security was found.
Modi is understood to have asked Jaitley and Swaraj to defend India’s stand at the WTO.