India U.S. Trade Policy Forum (TPF):Seeking gains from trade forum

News Highlights

With the reappearance of Indian mangoes in the U.S. market, officials are looking at what can be achieved in this year’s India U.S. Trade Policy Forum (TPF) session.

Focus Points

• In November 2021, India and the United States held the 12th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF) in New Delhi.
• This forum was helpful in overcoming a pandemic-induced hiatus in mango trade.
  • The forum finalised work on market access facilitation for mangoes and pomegranates from India.

• Against this backdrop, officials of both sides are looking forward to organising the next TPF.
• Expectation of US in the next TPF
  • Exporting ethanol and an associated animal feed ingredient, called DDGS (Distillers’ Dried Grains with Solubles) to India
  • As far as ethanol trade is concerned, US is aware that India had some sensitives given it has domestic ethanol producers.
  • The US is keen on finding a way to supplement these sources, to help with renewable energy goals, even if that meant not fully liberalising the market for ethanol.
• Expectation of India
  • For India, the export of carabeef (water buffalo meat) to the U.S., as well as table grapes are among the agricultural trade priorities.
  • The resumption of Indian wild caught shrimp exports to the U.S. is also an agricultural priority area.
    • US law prohibits the import of wild caught shrimp and its derivative products if protected sea turtle species are harmed in the process.
    • India views this as a technical barrier to trade.

India U.S. Trade Policy Forum

• The India-US Trade policy Forum (TPF) was established in July 2005 to discuss trade and investment issues.
• The objective of the forum is to
  • Facilitate trade and investment flows between the two countries
  • Develop and implement trade policies through transparent procedures that comply with international obligations
  • Foster a conducive environment for technological collaboration and innovation
  • Promote inclusive economic growth and job creation in India and the US.

• The Minister of Commerce and Industry for India and the United States Trade Representative of the USA are the co-chairs of the Trade Policy Forum.
• Focus Groups:
  • The forum identified five focus groups to engage on trade policy matters
    • Agriculture Focus Group
    • Innovation and Creativity Focus Group:
    • Investment Focus Group
    • Services Focus Group
    • Tariff and Non-Tariff Barriers Focus Group
  • Four working groups
    • agricultural goods,
    • non-agricultural goods,
    • services and investment (include digital trade), and
    • intellectual property (IP)

India – US Economic Relation

• Economic Relation 
  • In 2020-21, the United States was India’s top export destination and second-largest trading partner.
  • In 2020-21, India’s exports to the US were valued at $51.62 billion, while imports were valued at $28.88 billion, resulting in a $23 billion trade deficit for the US.
  • The US is the fifth  FDI  source to India.
  • A bilateral India-US CEO’s Forum exists to involve the business sector more fully in discussions about trade and investment issues.
  • The India Infrastructure Collaboration Platform was also established to help India achieve its infrastructure demands by using cutting-edge US technologies.

Content Source: The Hindu