Minister Piyush Goyal leads key trade relationship discussions with USTR Katherine Tai

iNDICA NEWS BUREAU-

From the US Generalized System of Preferences program to minimize the impact of fishing on sea turtle populations, a host of issues were discussed during the 13th Ministerial Trade Policy Forum (TPF) dialogue between the US and India that concluded in Washington DC on Wednesday, January 11. The action now moves to Geneva where Minister Piyush Goyal will hold extensive talks with United States Trade Representative (USTR) Katherine Tai.

Prime among the other topics that came up for discussion during the TPF included bilateral trade in goods and services, outstanding WTO disputes, resumption of inspections by the US Food and Drug Administration (FDA), and the Social Security totalization agreement.

Union Minister of Commerce and Industry Piyush Goyal and USTR Ambassador Katherine Tai highlighted the importance of the TPF in building robust bilateral trade ties and enhancing the bilateral economic relationship to benefit working people in both countries.

Goyal and Tai in their joint statement after the event said: “Bilateral trade in goods and services between India and US and reached $160 billion in 2021.” They also added that the significant potential of both nations’ economies remains unfulfilled and further engagement to continue increasing and diversifying bilateral trade is necessary.”

The Turtle Excluder Device (TED) design came up for deliberations at the meeting and that collaboration between India and the US has expedited the TED trials to ensure that the devices are effective in minimizing the impact of fishing on sea turtle populations and restoring market access for India’s export of wild-caught shrimps.

India also stressed its interest in the restoration of its beneficiary status under the US Generalized System of Preferences program. The US officials informed that this could be considered, as warranted, in relation to the eligibility criteria determined by the U.S. Congress.

After the forum concluded, while responding to a question on progress regarding GSP, Goyal said: “India has requested the US to restore GSP.” He also quickly added that withdrawal of GSP has not been detrimental to growing trade ties between the two nations”.

On mini-trade deals, Goyal said, “Both the countries are looking at bilaterally much larger footprints for trade and investments rather than mini-trade deals. The focus is on greater market access, and ease of doing business between the two countries.”

In their post-meeting joint statement, Goyal and Tai informed that bilateral trade in goods and services had touched a new high and reached about $160 billion in 2021. They also spoke about the significant potential that remains unfulfilled and the need to further enhance engagement to continue increasing and diversifying bilateral trade.

Tai welcomed India’s G20 Presidency and said the United States looks forward to working together in the Trade and Investment Working Group.

During the TPF intense negotiations were held on outstanding WTO disputes between the two countries to arrive at satisfactory outcomes in the coming months. India also expressed appreciation for the resumption of inspections by the U.S. Food and Drug Administration
(FDA) and asked the U.S. to also resume inspections of new facilities and non-priority areas at the earliest.

In their joint statement, Tai and Goyal acknowledged the ongoing discussions on a Social Security totalization agreement and supported intensifying the work for early results.

The TPF also discussed greater cooperation in the Fintech sector, and the potential of digital health, particularly telemedicine services. A new working group was initiated to support “Resilient Trade” and deepen bilateral dialogue on a range of issues.

While speaking about IPEF, Goyal said India stands with the US in its commitment to a free and open Indo-Pacific. The US welcomed India’s participation in the Indo-Pacific Economic Framework for Prosperity (IPEF).

Ambassador Tai and Minister Goyal expressed support for the IPEF initiative and expressed the belief that deepening economic engagement among partner countries is crucial for continued growth, peace, and prosperity in the Indo-Pacific region and that the IPEF will bring tangible benefits to the region.

A new TPF Working Group on Resilient Trade was also launched to enable officials to deepen bilateral dialogue on a range of issues that can enhance the resiliency and sustainability of the trade relationship so that it is better able to withstand current and future global challenges.

The TPF Working Groups will reconvene quarterly to identify specific trade outcomes to ensure that the trade relationship begins to reach its full potential. They also instructed senior officials to hold an inter-sessional TPF meeting by mid-2023 and agreed to reconvene the TPF at the Ministerial level before the end of 2023.

Goyal added, at the TPF both countries deliberated on finding bilateral solutions to outstanding WTO disputes. He expressed optimism about a satisfactory outcome over these issues in the next few months.

He said India has requested the US to expedite the issuance of business visas to facilitate faster movement of business persons across both sides.

Ambassador Tai welcomed India’s G20 Presidency and said the United States looks forward to working together in the Trade and Investment Working Group. She noted that the G20 can be a useful forum for initiating constructive dialogue and seeking to enhance coordination and cooperation among member countries on global trade issues.

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