New Delhi: The 14th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF) convened in New Delhi on January 12, with Piyush Goyal, Minister of Commerce and Industry, and Ambassador Katherine Tai, U.S. Trade Representative, co-chairing the event. A joint statement was issued post the meeting, highlighting crucial discussions and outcomes.
Key Highlights from the 14th India-USA TPF:
Joint Initiatives for Future Cooperation: The Ministers committed to laying the foundation for future Joint Initiatives, focusing on critical areas such as critical minerals, trade facilitation, supply chains, and trade in high-tech products.
Establishment of Joint Facilitative Mechanism (JFM): A Joint Facilitative Mechanism (JFM) will be set up to address non-tariff barriers. The JFM aims to facilitate mutual recognition of results from International Laboratories, reducing compliance costs for trade in high-quality goods.
G20 Outcomes on Digitalization of Trade Documents: Ambassador Tai acknowledged India’s G20 Presidency and the adoption of High-Level Principles on Digitalization of Trade Documents. Both nations agreed to further pursue the implementation of these principles in various forums.
Advancement in Social Security Totalization Agreement: Discussions on a Social Security Totalization Agreement gained momentum, with both sides expressing interest in fast-tracking engagements for a future agreement. This agreement is crucial for enhancing services trade and supporting Indian IT professionals working temporarily in the U.S.
Resolution on Shrimp Exports: India raised concerns about the ban on exports of wild-caught shrimps affecting Indian fishermen and exports to the U.S. Both Ministers welcomed the finalization of the Turtle Excluder Device (TED) design, facilitating enhanced seafood trade.
Resilient Trade Working Group: Discussions under the Resilient Trade Working Group focused on India’s designation as a TAA Compliant country. This designation would contribute to supply chain integration for India and the USA.
FDA Inspections for Pharma Products: India emphasized the need to increase FDA inspections in India to reach pre-pandemic levels. Both nations acknowledged the crucial role of professional and skilled workers, students, investors, and business visitors in enhancing bilateral economic and technological partnership.
Import Management System Collaboration: The issue of import management systems for specific hardware was discussed, with Ambassador Tai expressing a willingness to collaborate with India on achieving supply chain resilience in this sector.
Restoration of Beneficiary Status: Minister Goyal reiterated India’s interest in restoring its beneficiary status under the U.S. Generalized System of Preferences program. Ambassador Tai noted that this could be considered based on eligibility criteria determined by the U.S. Congress.
Bilateral Trade Momentum: Both Ministers appreciated the strong momentum in India-US bilateral trade, which has likely surpassed $200 billion in calendar year 2023, reflecting accelerated growth since 2014.
The meeting showcased the substantial progress made in addressing concerns impacting the bilateral trade relationship, particularly the historic settlement of longstanding trade disputes at the WTO. The India-U.S. bilateral trade relationship continues to thrive, fostering economic growth, and the Ministers expressed optimism for continued collaboration in various forums, including QUAD, I2U2, and IPEF. Ambassador Tai’s visit further strengthened the deep ties between the two nations.