US, India to address trade disagreements

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Ties between the US and India hit a high watermark back in 2008 when the two signed a civil nuclear energy deal.

Since then, many analysts said the relationship has drifted – in particular for businesses which say links between the two nations haven’t borne fruit.

As India’s Prime Minister Manmohan Singh heads to the White House for his third summit with Barack Obama in four years, America’s National Association of Manufacturers wants Mr Singh’s visit to refocus attention on the problems surrounding trade between the US and India.

Mr Singh’s second official visit to Washington reflects the high level exchanges between the two nations have now become routine.

However, many experts said that unlike other meetings, Mr Singh’s latest visit to Washington won’t necessarily generate much positive momentum mainly because the talks are likely to focus on some key sticking points in the economic relationship.

In both New York and Washington, Mr Singh is being greeted with increasing discontentment from the America’s National Association of Manufacturers.

They claim Indian government agencies and courts aren’t playing fair because the market in areas like infocomm technology, clean energy and electronics are supplied only by Indian firms.

Linda Dempsey, vice president of international economic affairs at the National Association of Manufacturers, said: “India has adopted an industrial policy that’s all about growing their jobs and their manufacturing at the expense of ours and everyone else’s.

“We’re hoping that when President Obama meets Prime Minister Singh, he will ask the Indian government to reverse course and to adopt a fair trade policy with the US. We are really counting on the President to make this a priority in these discussions.”

However, Persis Khambatta, Fellow with the Wadhwani Chair in US-India Policy Studies at the Centre for Strategic and International Studies, said Indian manufacturers in the sectors affected, like electronics, are just trying to develop their own national industries.

“The Indians feel as though electronics imports are their second highest import bill, after oil and energy, as they feel this is an unsustainable way to go forward with manufacturing and electronics in the near future so they enacted a policy which says by certain points in time, you need to be producing these products locally, in India,” said Khambatta.

As India’s economy suffers its worst economic slowdown since 1991, disagreements over manufacturing won’t be the only concern about the Indian business environment raised by Obama.

He is also likely to show his unease about restrictive rules on procurement and a lack of protection for US intellectual property.

Obama is like to express concern about possible US immigration reform, which could make it harder for technology companies to bring skilled Indian workers to the US.

Both leaders will be looking to scotch any rumours that the relationship between the world’s oldest and largest democracies is growing in any way sluggish.

They will be highlighting the progress that’s been made but given the dissatisfaction on both sides over trade and investment, they will also have to acknowledge there’s still a long way to go.

 

 

 

Source : Channel News Asia | September 27, 2013

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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