The United States of America and India have held a variety of dialogues over the years focused on commerce and trade. However, a recent decision to hold a commercial dialogue on March 10, 2021, has sparked the interest of many experts who believe that this dialogue could pave the way for a more robust commercial relationship between the countries. After much anticipation, this dialogue has been scheduled to occur three years after the last one.
With this upcoming dialogue, several important issues ranging from bilateral trade relations to market access, investment policies, and regulatory issues, will be discussed. The commercial dialogue will feature conversations between United States Trade Representative (USTR) Robert Lighthizer and Indian Commerce Minister Piyush Goyal, and is expected to provide opportunities for both countries to strengthen their economic partnership despite the current global economic recession.
This upcoming dialogue has been long-awaited by experts who believe that the relationship between India and the United States is vitally important for the global economy. India is the world’s sixth-largest economy, while the US is the world’s largest. Moreover, India’s position as the world’s second-most populous country provides enormous potential for future trade and investment.
India and the United States have had a deep economic relationship for decades, and developments in recent years suggest that the relationship is only going to get stronger. Indian Prime Minister Narendra Modi has worked closely with US President Donald Trump on several initiatives, such as the Indo-Pacific Economic Corridor and the Quad, in an effort to deepen economic ties between both countries. Furthermore, discussions on bilateral trade issues have been ongoing between the two countries. These discussions have focused on issues such as high tariffs, intellectual property, and preferential treatment of domestic businesses.
Despite the recent tensions between the two countries, experts believe that they can work together to strengthen their economic partnership. During his recent visit to India, President Trump praised the country’s economic growth, which he said could benefit both countries. Trump praised Modi for his efforts to improve the business climate in India, noting that “India has reached unprecedented heights under the leadership of PM Modi. It’s time to build an even stronger relationship between our two great nations.”
The commercial dialogue is expected to provide a platform for both countries to discuss a wide range of issues. Along with the renewal of the Generalized System of Preferences (GSP), effective from November 1, 2019, the United States government has also been in ongoing discussions with India regarding market access for American agricultural products. Additionally, there have been discussions on promoting greater economic cooperation, innovative technologies, data flow, market reforms, and intellectual property protection.
The commercial dialogue is also expected to help businesses in both countries access each other’s markets, provide feedback on regulatory barriers, and develop a framework for closer cooperation. This partnership, which dates back to the Cold War period, has the potential to contribute significantly to the global economy.
It is essential to note, however, that both India and the United States will have to work hard to overcome some of the current hurdles that exist in their trading relationship. India, for its part, has been criticized for high trade barriers, including steep tariffs on select imports, restrictions on foreign investment, and weak intellectual property laws. The United States has also faced criticism over its high tariffs on Indian steel and aluminum, which have led to a trade imbalance between the two countries.
One of the significant challenges that this commercial dialogue will seek to address is the current trade imbalance between the United States and India. The United States has long expressed concern over India’s high tariffs on certain goods, including agricultural products, and the lack of access for American companies in some sectors.
On the other hand, India has expressed concern over the United States’ recent protectionist measures, including high tariffs on certain Indian goods, as well as the H1-B visa program, which has made it more difficult for Indian professionals to work in the United States.
In conclusion, India and the United States have had a long-standing commercial relationship, and the upcoming dialogue is expected to strengthen this relationship further. The various issues discussed during this dialogue will provide the two countries with opportunities to expand their economic partnership, enhance the business environment and ensure sustained trade and growth. If both sides can resolve the current trade imbalances, this commercial dialogue has the potential to become a pivotal moment in the history of the commercial relationship between these two great nations.