NEW DELHI: After bilaterally resolving many major trade disputes that had reached the dispute settlement body at the World Trade Organisation, trade ministers of India and US will meet here on Friday to discuss other pending issues.
Fast-tracking of the process of inspection and audit of Indian pharma companies by US Food and Drug Administration, export controls on high-tech products and ban on import of Indian shrimps by the US are among the issues to be discussed.
At the 14th meeting of the India US Trade Policy Forum (TPF) co-chaired by Commerce and Industry Minister Piyush Goyal and US Trade Representative Katherine Tai, the issues around restoration of India’s beneficiary status under the US Generalised System of Preferences programme may also come up.
The inspections by the US FDA of facilities of Indian drug makers was disrupted during the pandemic, but have since resumed. India wants the pace to go up to achieve at least pre-pandemic levels, so that exports to drug formulations to the world’s largest economy is unhindered.
Between 2020 and March 2021 there was a complete halt to the FDA inspections. In 2022 the drop in inspections was 79% as compared to 2019, according to a study. Of the $25.3 billion worth of pharma exports in FY 23, the US market accounted for 34.8%.
India also wants the US side to resume inspections of new facilities and non-priority areas at the earliest. Further, India will raise the issue of export regulations for high-tech products and technologies as the country has expressed interest towards recognising it as a Trade Agreements Act (TAA) designated country by the US.
During his visit to the US in June last year, Prime Minister Narendra Modi expressed India’s interest in this regard. After that visit, a formal discussion was initiated between the two countries on the matter.
The issue of ban by the US on import of Indian wild caught shrimp would also figure prominently in the TPF meeting. The ban has been put on concerns that fishing for shrimps also damages other marine life. Both sides are engaged in design and approval of equipment that will minimise loss to sea turtles.
India GSP benefits that allowed preferential access to some Indian products in US markets were revoked in 2019 on grounds that India had denied adequate access to its agricultural and dairy markets and had placed prohibitive price controls on medical devices.
Exports under GSP tariff lines or products was $ 8.7 billion in 2018 (GSP benefits availed only on $ 6.3 billion), which increased to $ 9.4 billion in 2019.
As both sides had agreed to end their WTO disputes in June during Prime Minister Narendra Modi’s state visit in June the demand for restoration of GSP benefits was raised again. The US side maintains that it would be considered in relation to eligibility criteria determined by US Congress. Both sides will also exchange views on multilateral trade issues and their engagements and other forums like Indo-Pacific Economic Framework for Prosperity and WTO.
The US is the biggest export market for India. In FY 23 India’s exports to the US were $78.5 billion, around 20% of the total. The India-US Trade policy Forum (TPF), established in 2010, is an arrangement between the two Governments to discuss trade and investment issues. It is held every year and plays an important role in strengthening and expanding the bilateral economic and trade relationship.
The issues and concerns are discussed under five Focus Groups on agriculture, innovation and creativity, services and tariff and non-tariff barriers. The dialogue addresses a wide range of issues that will lead to initiatives in key sectors and create momentum for expanding bilateral trade.
Source: The Financial Express
The post Pharma, Restoration Of Duty Reliefs To Top India-Us Trade Forum Agenda first appeared on Latest India news, analysis and reports on IPA Newspack.
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