India, US to resume bilateral investment talks

India and the United States will resume the long-pending Bilateral Investment Treaty, with Prime Minister Narendra Modi saying a strong and growing economic relationship is vital for the success of strategic partnership between the two countries.

US President Barack Obama endorsed Modi’s sentiment.

“Economic growth in our two countries is becoming stronger. Our business climate is improving. This gives me great optimism about our economic ties. We have established a number of effective bilateral mechanisms… We will also resume our Bilateral Investment Treaty (BIT),” Modi said, addressing a joint press conference with Obama here.

Obama endorsed Modi’s statement by saying, “strong economic relations with India are critical for the success of United States in the 21st century.”

India and the US are engaged in BIT negotiations since 2008, aimed at enhancing bilateral commerce and investment flows. For India, it would bring the much needed foreign direct investment and help generate employment opportunities.

But the talks between the two countries have been on hold since February 2014. Intellectual Property Rights (IPR) and dispute settlement have been the main issues coming in the way of India –US BIT. But other concerns such as state subsidies, government procurement, environment protection and financial stability have also ruled high on the Indian government’s mind. The India-US BIT had, however, figured in the meeting between US Secretary of State John Kerry and Modi during the Vibrant Gujarat Summit early this month and both sides had evinced keen interest on resolving the issue.

“In the last few years, trade between our two countries increased by some 60 per cent, a total record of $100 billion. We want to trade even more,” Obama said.

Obama and Modi looked forward to enhancing engagement on IPR in 2015 under the High Level Working Group on Intellectual Property for the mutual benefit of both countries, a joint statement issued after the press conference said.

Both leaders recognised the progress made in constructive engagement on intellectual property under the last round of the India-US Trade Policy Forum held in November last year. The two sides also agreed to hold public-private discussions in early 2015 under the aegis of the India-US Commercial Dialogue for a period of two years on mutually agreed areas of cooperation, according to the joint statement.

The two leaders committed to explore areas of collaboration in skill development ranging from establishing quality assurance systems for skilling certification standards, setting up of skill development centres, nurturing and promoting social entrepreneurship and strengthening the innovation and entrepreneurship ecosystem.
DH News Service