In this news, we discuss the Restoring India’s GSP Status, A Small Indo-American Trade Agreement To Send A Very Strong Signal: Aghi
Restoring India’s Generalized System of Preferences (GSP) status by US President-elect Joe Biden and Washington quickly concluding a small trade deal with it would send a very strong signal to New Delhi, according to the head of a large company American-focused India advocacy group. In an interview with PTI, Mukesh Aghi, chairman of the US India Strategic and Partnership Forum (USISPF), said India and the United States should strike a small trade deal as a quick win and start focusing on bigger problems.
Trade and Industry Minister Piyush Goyal said in September that most of the issues preventing a limited India-U.S. Trade deal had been resolved and that an agreement could be signed whenever the political situation in the United States permitted it. India calls for exemption from high tariffs imposed by the United States on certain steel and aluminum products, resumption of export benefits of certain domestic products under the GSP and better access to markets for its products from sectors such as agriculture, automotive, automotive components and engineering.
On the other hand, the United States wants better market access for its agricultural and manufacturing products, dairy products and medical devices, aside from reduced import duties on certain information technology products. and communication. Last year, President Donald Trump ended India’s designation as a developing country beneficiary under the GSP’s key trade program after determining that it had failed to insure the United States that it would provide “fair and reasonable access” to its markets.
“I think we have a small (India-US) trade deal on the table. (They) should just close this out as a quick win. And then start focusing on the bigger issues. For me, this is a positive sign. I think a restoration of the GSP will send a very strong signal to the Indian government that this administration knows how to do business with India, ”said Aghi. As Vice President of the United States from 2009 to 2017, Biden had notably focused on increasing trade relations between the two countries. In fact, he set himself the goal of increasing bilateral trade to $ 500 billion from around $ 100 billion per year. Five years later, the trade is now 150 billion USD per year.
Kicking off the relationship with a small trade deal and reestablishing the SPG, which was revoked by the outgoing Trump administration, will be helpful, he said. The GSP is the largest and oldest trade preferences program in the United States and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
Under this program, nearly 2,000 products, including automotive components and textile materials, can enter the United States duty-free if recipient developing countries meet eligibility criteria established by Congress. India was the biggest beneficiary of the program in 2017, with US $ 5.7 billion of imports to the United States enjoying duty-free status.
“I also strongly believe that the defense collaboration is very strong (and), going in the right direction,” Aghi said. According to the head of the USISPF, a Biden-Harris administration will not be transactional or Twitter based on mutual respect and a long-term vision.
While the momentum continues politically, the QUAD effort will continue, he said, adding that greater collaboration will also occur on the economic front. In November 2017, India, Japan, the United States and Australia gave shape to the long-standing proposal to create the “Quad” to develop a new strategy to maintain critical sea routes of the Indo-Pacific free from all influence.
It’s not just a trade deal, it’s about reducing supply chain risks with China, which is likely to become more confrontational in the coming months. India can play a much bigger role, he said. Aghi said issues such as Kashmir and minority rights will be discussed.
They would be discussed, but keeping the big picture in mind, they wouldn’t be must-haves, he said. Aghi, who provided inputs to the transition team on Indo-U.S. Relations, said the Biden administration would likely focus on a fair trade deal to secure an early victory.
He also hopes for a multilateral approach in which the United States works with India on a host of global issues such as climate change, energy security and the environment. “I think you will see a much more structural approach between the two countries,” he said.
Responding to a question on achieving the ambitious USD 500 billion bilateral trade target, Aghi underscored the need to remove barriers to trade growth, focusing more on energy partnership and supply chain, and leveraging India on 5G. It is also important to focus on increasing the number of students coming to the United States to 500,000. Vaccine diplomacy could be another area of collaboration where India can help produce vaccines at low cost. , did he declare.
Believing that there will be much stronger collaboration between the United States and India on the Indo-Pacific region, Aghi said he would not be surprised if the Biden administration revives the TPP (Trans-Pacific Partnership) and encourages India to look into this. In 2017, President Donald Trump officially withdrew the United States from the Trans-Pacific Partnership, a 12-country trade deal, one of the main international trade initiatives of his predecessor Barack Obama.
- In an interview with PTI, Mukesh Aghi, chairman of the US India Strategic and Partnership Forum (USISPF), said India and the United States should strike a small trade deal as a quick win and start focusing on bigger problems. Trade and Industry Minister Piyush Goyal said in September that most of the issues preventing a limited India-U.S. Trade deal had been resolved and that an agreement could be signed whenever the political situation in the United States permitted it.
- Restoring India’s GSP Status, A Small Indo-American Trade Agreement To Send A Very Strong Signal: Aghi