Ahead of Prime MinisterManmohan Singh’s visit to Washington on September 27, US experts have spoken of the need for the two countries to use this opportunity for urgent action to resolve some key issues affecting India-US economic relations.
Charlene Barshefsky, the former US Trade Representative in the Clinton administration from 1997-2001, led the charge by urging New Delhi to do away with its “vexing” regulations and market access barriers and asking Washington to scrap clauses in the immigration reform legislation that target Indian IT companies operating in America and the skilled professionals they bring along.
“Prime Minister Singh’s upcoming visit to Washington should be used by both sides as an opportunity to re-affirm these commonalities and put the economic relationship on a much more positive and accelerated trajectory,” Barshefsky said, while delivering a keynote address at a symposium organized by the Center for Strategic and International Studies here.
“This is a relationship that should be much stronger than it is. It’s a relationship that should be healthier than it is. It’s a relationship that should be contributing more to both economies than it is,” Barshefsky commented.
Egged on by American companies, US lawmakers have in recent months been complaining about India’s “discrimination” against American and other foreign companies through market access barriers, including tariffs, and “buy local” requirements. They are also attacking India for its “lax intellectual property protections”.
Although India-US trade has grown several fold over the past decade, it is being pointed out by Americans that the $22 billion US exports to India as of 2012 is nowhere near the $110 billion worth of exports made to China.
Barshefsky also brought up the issue of the unrealized investment potential of the landmark India-US civil nuclear deal because of India’s tough nuclear liability law which, according to her, appears to be out of step with international standards.
Referring to Indian concerns, she said these must be addressed by Washington, including New Delhi’s long-standing demand for a totalisation agreement to hand back social security payments made by Indian workers coming to the US as guest workers under the H-1B programme.
Diane Farrell, Executive Vice President of the US-India Business Council, brought up issues relating to multibrand retail, commenting: “Multibrand retail is emblematic of some of the deep frustrations and concerns of those who have great enthusiasm and high expectations of the strength of the relationship.”