Bhatia discusses U.S.-India trade issues ahead of talks today

Bhatia discusses U.S.-India trade issues ahead of talks today    Deputy U.S. Trade Representative Kharan Bhatia said trade talks between the United States and India will continue today, with new trade representative Susan Schwab to discuss issues in five key areas: agricultural issues, industrial products, services, investment and innovation, and creativity, which is a focus on intellectual property rights.
   Speaking during a conference call this week, Bhatia reiterated that the two countries want to double two-way trade within three years.
   “Clearly industry is very interested in, the U.S. industry is interested in the opportunities presented by the fast-growing Indian market, and Indian exporters and investors appear increasingly interested in the United States as well,” he said.
   Bhatia also said that providing more opportunities for U.S retailers within India is a priority.
   “Retail is obviously a subject that does come up and has come up and, I think it’s one of the more politically charged subjects on the Indian side,” he said. “At the same stage it’s an area that we believe is an important area to see progress. The Indians have moved with respect to single branded stores there at the end of last year, which obviously was a move in the right direction. I think it’s fair to say that we all continue to hope to see more movement.”
   When asked what barriers could potentially keep the two nations from achieving their trade growth goals, Bhatia explained: “First of all, high technology trade is obviously an area of significance for both sides as areas that we’re looking to grow. I think there continues to be latent concerns about U.S. export control restrictions on India that frankly don’t even exist in many cases any more, but there’s this perception of regulatory barriers impeding trade in that area. So I think there is more that can be done to probably strengthen the confidence of the business sectors simply by pointing them to the reality of what our (concerns are) in that area.”
   “Secondly, civil nuclear I think is a (key) area here. The administration is obviously working hard there to pass that. That’s not just for the sake of opening up that trade, but frankly for the confidence that it will engender in trade and the technology areas. Services is obviously an enormous opportunity for both countries, both India firms competing in the United States and U.S. firms competing in India, but there do have to be steps taken that will either address things like investment restrictions or the ability to do business on the ground there.
   “So I think our strategy is, frankly, to focus on the regulatory restrictions that are most impeding trade flows and work our way through them almost sector by sector. Unlike some countries with whom let’s say we’re engaged in comprehensive FTA discussions, this is one where I think what we’re trying to do is address it sector by sector with the Indians raising concerns to us and us raising concerns to the Indians. And hopefully out of that address the concerns that are in fact discouraging investment and trade.”
   Bhatia also said that regulatory issues are more of a concern to the administration than tariffs.
   “There are certain restrictions that affect our companies or our companies are more concerned about potentially than others. There are certain sectors in which we are stronger. So we’re trying to work with the Indians to address those concerns. They have raised certain concerns with our practices that we’re trying to address as well,” Bhatia said.