In what ways can India and USA iron out their differences due to the recent trade turmoil that has been putting their strategic partnership at risk? Discuss (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· Trade turmoil has been putting at risk the U.S.’s strategic partnership with India. In the last two months, the U.S. has withdrawn from India preferential tariff benefits under its Generalized System of Preferences (GSP) programme.
· India has imposed retaliatory tariffs in response to tariffs that the U.S. applied last year on steel and aluminium.
· Conflict and disputes are not new to the U.S.-India relationship. They have ranged from trade in jute and almonds in the period of the General Agreement on Tariffs and Trade to poultry and solar panels under the World Trade Organization (WTO).
· The U.S. is India’s single most important export market; India is a huge and growing market for U.S. investment and exports.
Resolving differences
· A starting point would be to empower the Office of the U.S. Trade Representative and the Ministry of Commerce and Industry to develop some problem-solving cooperative efforts under the existing Trade Policy Forum on issues such as digital trade, regulatory coherence, and intellectual property rights, matching their earlier successes on the WTO Trade Facilitation Agreement.
· Utilizing bilateral investment initiative of India- US to enhance the trust deficit between the countries.
· USA can use special 301 report to remove the obstacles that affect the trade relationship with India.
· India needs to use its soft power matrix tool to increase the confidence building measures with USA.
· Frequent diplomatic engagement constructively at the executive level is mandatory to iron out the differences between the countries.
· This future work would be better advanced if India created a new career trade staff that reports directly to the Prime Minister’s Office.
· The U.S. administration has experienced trade staff, even at senior levels, who build negotiating skills over their careers and relationships of rapport and trust with their foreign counterparts. India could better serve its trade interests with the same kind of approach.
· This is a scenario that could evolve into a new relationship of common purpose on trade.
· However, even this scenario is a limited one; the U.S.-India strategic partnership deserves higher aspirations on trade. The goal should be a more comprehensive platform for expanding trade and investment through the progressive elimination of trade and investment barriers, from protectionist regulatory measures to tariffs and restrictions on trade in services.
Krish 5 years
Kindly review, Thanks u
IAS Parliament 5 years
Good answer. Keep Writing.
Harisindhan 5 years
IAS Parliament 5 years
Try to discuss about various ways of India- US engagement in improving economic partnership. Mention about India- US CEO forum, special 301 report etc. Keep writing.
Aarthi 5 years
Hi,
Please review.Thanks in Advance
IAS Parliament 5 years
Try to include specific points like bilateral investment initiative of India- US, special 301 report etc. Keep writing.
krishynachaithanya chintamani 5 years
Hi my friends pls review.
IAS Parliament 5 years
Try to mention about special 301 report, India - US CEO forum etx. Keep writing.
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