The US is one of India’s most important partners and the two countries have grown closer in recent years. The US had the highest exports from India in 2020-21 and was the second largest trading partner of the US. During this period, there was a slight decline in exports from America to India, but despite this, it was included in the top 15 export markets of America. However, there are deep differences between the two countries on some issues.
differences between the two countries
US Trade Representative Catherine Tai recently told the Senate Finance Committee that the two countries have sharp differences on some issues. He said India is an important trading and strategic partner for the US and despite some sharp differences, the two countries have agreed to work together on a wide range of issues, including market access commitments. For example, during India’s visit in November, there was a lot of protest in India over the alleged dumping of prawns. However, last year the US got access to export pork to India.
Tai said that we will continue to pursue this relationship, which has been strategically important for us as well as traditionally challenging. In this, US Senator Michael Bennett said that India is an important ally of America. But I am deeply concerned about the state and future of our relations with India. India did not condemn Russia’s attack on Ukraine and President Vladimir Putin. This has disappointed. To this, Tai said that India has been an important trading partner and strategic partner. India is complex and we live in a complex world.
trade a challenge
In 2020-21, exports from India to the US stood at $ 51.62 billion, while India imported $ 28.88 billion from there. In this way, America’s trade deficit stood at $ 23 billion. Pearls and precious stones, medicine, machinery, electronics, clothing, vehicles, chemicals, fish products optical, photographs, medical equipment and aluminium are traded the most between the two countries. India recently signed a Free Trade Agreement (FTA) with Australia. Can such an agreement be made with America as well?
Trade is a major challenge in India-US relations. India, waiving high import duties on its steel and aluminum products in the US, restoring export benefits under the Generated System of Preferences (GSP), and providing access to India’s agriculture, vehicles, auto parts and engineering products. Demanding greater access to markets.
On what issues are there differences
America, on the other hand, wants the markets to be opened more for agricultural and manufactured products in India. It is seeking better market access for its dairy products and medical devices in India. Along with this, the duty on import of information and IT products should be reduced. American companies like General Motors, Ford and Harley Davidson have exited the Indian market over the years. The US objected to the fact that its automobile companies in India levy heavy duty. This is the reason that at present there is no discussion between the two countries regarding FTA.
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Source: navbharattimes.indiatimes.com
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