On 22nd November 2021, India and the US vowed to improve their trade ties and “take it to the next level” with closer partnership on supply chains flagged as a key thrust area.
After a four-year pause, during her maiden trip to India to revive the Trade Policy Forum dialogue, US Trade Representative Katherine Tai said, “At USTR, we hear frequently from our stakeholders on issues that will be familiar to those of you involved in moving goods and services between our two countries: Market access restrictions, high tariffs, unpredictable regulatory requirements, and restrictive digital trade measures. These
are issues where we need to make progress and they will be on the top of my list while I’m here.”
The Trade Policy Forum is a ministerial-level engagement meant to remove frictions and identify new areas for growth. The key priority items on India’s wishlist include Visas, the Totalisation Agreement and market access for some of its farm products. Similarly, the US has been demanding lower tariffs for its products, doing away with local production mandates as well as easier data norms. And while the government is also looking to tap American investors for funds in key sectors, issues on the table at next week’s WTQ ministerial meeting are also expected to be figured during meetings between commerce and industry minister Piyush Goyal and Tai.
Observing that the world looked at India as a trusted partner, Piyush Goyal said, “India’s competitive advantages of cost, skilled manpower and huge market combined with US’s innovation and investment can become a winning a partnership among natural friends.” He then added that India and the US have realised the necessity of diversifying critical supply chains. Further Katherine Tai said, “I’m also looking forward to discussing how further collaboration on worker-centric policies can benefit our trade relationship.”
Recommended Read: How Does a Procurement Strategy Help in Increasing Profitability?