Tension escalates as India moves to block US trade probes
by Manoj Kumar,
2014-02-27 05:44:16.0
NEW DELHI — India has decided to block investigations by the US into its trade policies and patent laws and to prepare for battle at the World Trade Organisation, which could escalate already strained tension between the two countries.
New Delhi is furious about a trade sanctions threat by the US Trade Representative’s (USTR) office over its protection of intellectual property rights (IPR), preference for domestic producers and non-trade barriers.
Ahead of a general election, Prime Minister Manmohan Singh’s government does not want to be seen as bowing to US pressure, amid lingering tension over the arrest and strip-search of a female diplomat in New York suspected of visa fraud.
On Wednesday the National Association of Manufacturers (NAM) — which represents about 50 US business groups — asked the USTR to designate India as a Priority Foreign Country in its 2014 report.
"This designation appropriately would rank India among the very worst violators of intellectual property rights and establish a process leading to concrete solutions," NAM said in a letter to US Trade Representative Michael Froman.
The USTR is holding public hearings for its annual report due in April. The report will provide details on nations denying protection of IP rights or fair market access to US firms.
India is widely perceived in Washington as a serial trade offender, with US firms unhappy about imports of everything from shrimp to steel pipes, which they say threaten jobs, as well as a lack of fair access to the Indian market for its goods.
This month Washington said it was filing its second case at the WTO over domestic content requirements in India’s solar programme, which aims to ease its energy shortages.
There are 14 past or current WTO cases between India and the US, whose bilateral trade in goods measured $63.7-billion last year, not including the latest case.
India has since hardened its stance, instructing officials not to entertain any request from the United States International Trade Commission (USITC) — a quasi-judicial federal agency — to examine its trade practices.
India’s trade ministry has also "advised" US Deputy Trade Representative Wendy Cutler to postpone a visit to India scheduled for late March because of parliamentary election due in April or May, a senior official told Reuters.
A spokeswoman for the USTR said officials from both governments continued to engage in constructive discussions on trade and investment issues and to seek opportunities for further economic collaboration.
In a February 12 report the USTR listed markets in Delhi, Mumbai and Hyderabad as among the worst offenders globally for the sale of pirated software and counterfeit goods.
A visit by the USITC delegation to meet officials from the Indian commerce, industry, health, telecom and finance ministries has also been put on hold.
A USITC spokeswoman confirmed the delay, saying they were looking for "other windows" for a visit, but declined to comment on the reasons for the delay.
Newly appointed Trade Secretary Rajeev Kher, who, as chief WTO negotiator pushed India’s stand on food security issues at a WTO meeting in Bali, has told his officials to tackle bilateral trade disputes preferably through multilateral forums.
India has urged President Barack Obama’s administration not to fall prey to special-interest groups and to consider trade issues in the context of the wider economic and strategic relationship between the two countries.
Officials say putting India on a priority foreign countries list would hurt bilateral relations.
"There are clear stresses in the India-US trade/economic relations," said a government official. "If it is a strategic relationship they should be looking at the bigger picture."
Reuters
Indian Prime Minister Manmohan Singh. Picture: REUTERS
NEW DELHI — India has decided to block investigations by the US into its trade policies and patent laws and to prepare for battle at the World Trade Organisation, which could escalate already strained tension between the two countries.
New Delhi is furious about a trade sanctions threat by the US Trade Representative’s (USTR) office over its protection of intellectual property rights (IPR), preference for domestic producers and non-trade barriers.
Ahead of a general election, Prime Minister Manmohan Singh’s government does not want to be seen as bowing to US pressure, amid lingering tension over the arrest and strip-search of a female diplomat in New York suspected of visa fraud.
On Wednesday the National Association of Manufacturers (NAM) — which represents about 50 US business groups — asked the USTR to designate India as a Priority Foreign Country in its 2014 report.
"This designation appropriately would rank India among the very worst violators of intellectual property rights and establish a process leading to concrete solutions," NAM said in a letter to US Trade Representative Michael Froman.
The USTR is holding public hearings for its annual report due in April. The report will provide details on nations denying protection of IP rights or fair market access to US firms.
India is widely perceived in Washington as a serial trade offender, with US firms unhappy about imports of everything from shrimp to steel pipes, which they say threaten jobs, as well as a lack of fair access to the Indian market for its goods.
This month Washington said it was filing its second case at the WTO over domestic content requirements in India’s solar programme, which aims to ease its energy shortages.
There are 14 past or current WTO cases between India and the US, whose bilateral trade in goods measured $63.7-billion last year, not including the latest case.
India has since hardened its stance, instructing officials not to entertain any request from the United States International Trade Commission (USITC) — a quasi-judicial federal agency — to examine its trade practices.
India’s trade ministry has also "advised" US Deputy Trade Representative Wendy Cutler to postpone a visit to India scheduled for late March because of parliamentary election due in April or May, a senior official told Reuters.
A spokeswoman for the USTR said officials from both governments continued to engage in constructive discussions on trade and investment issues and to seek opportunities for further economic collaboration.
In a February 12 report the USTR listed markets in Delhi, Mumbai and Hyderabad as among the worst offenders globally for the sale of pirated software and counterfeit goods.
A visit by the USITC delegation to meet officials from the Indian commerce, industry, health, telecom and finance ministries has also been put on hold.
A USITC spokeswoman confirmed the delay, saying they were looking for "other windows" for a visit, but declined to comment on the reasons for the delay.
Newly appointed Trade Secretary Rajeev Kher, who, as chief WTO negotiator pushed India’s stand on food security issues at a WTO meeting in Bali, has told his officials to tackle bilateral trade disputes preferably through multilateral forums.
India has urged President Barack Obama’s administration not to fall prey to special-interest groups and to consider trade issues in the context of the wider economic and strategic relationship between the two countries.
Officials say putting India on a priority foreign countries list would hurt bilateral relations.
"There are clear stresses in the India-US trade/economic relations," said a government official. "If it is a strategic relationship they should be looking at the bigger picture."
Reuters
Change: -0.47%
Change: -0.57%
Change: -1.76%
Change: -0.34%
Change: 0.02%
Data supplied by Profile Data
Change: -1.49%
Change: 0.09%
Change: -0.47%
Change: 0.00%
Change: -0.02%
Data supplied by Profile Data
Change: 0.47%
Change: 0.90%
Change: 0.36%
Change: -0.15%
Change: 1.05%
Data supplied by Profile Data
Change: 0.21%
Change: -0.32%
Change: 0.20%
Change: -1.22%
Change: -1.41%
Data supplied by Profile Data