India will soon sign a framework agreement on trade and investments with United States, its second biggest export destination. However, this treaty will not include issues on H1B visas, market access to Harley Davidson bikes and intellectual property rights enforcements. The pact will also not encompass duty free trade of goods.
“The objective of this agreement is to enhance trade and investments. We will fast track the talks on this agreement,” said commerce minister Anand Sharma, after attending the US-India Trade Policy Forum with United States trade Representative Ron Kirk. The meeting comes days before the visit of Prime Minister Manmohan Singh to US. India and US are negotiating a separate bilateral investment pact, which aims at smoother flow of investments between both the countries.
Though Kirk appreciated the new measures to enhance economic ties between both the nations, he pointed out towards specific market access issues on farm products like pistachio and Harley Davidson bikes. “Mangoes now fly directly to US. But then here there is not a single Harley Davidson bike that is being sold. Trade does not have to be a zero sum game,” Kirk said pointing towards high duties on products of the United States interest in India.
In addition, US also put forth their demand for opening up India’s financial sector for US firms. “The US has long sought greater access to the Indian market in the financial services and goods and services market and number of areas in which there are no differences,” Kirk added.
Both Sharma and Kirk agreed that this round of talks on the trade policy forum was one of the most productive ones. Over the years, the TPF had become mechanical. We were merely meeting to mark check lists… This meeting was characterised by its frankness and improved tone,” Kirk said.
On its part India took up the issue of H1B visas with US. Commerce Minister Sharma and his officials put forth the country’s demand for more of these visas, used by infotech professionals. “This will be discussed outside the TPF as it is a immigration issue. The administration is working with the congress on this,” Kirk said.
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