Locke calls for India trade liberalization

Locke calls for India trade liberalization    India needs to lower high tariffs and other administrative barriers to trade if economic cooperation with the United States is going to reach its full potential, U.S. Commerce Secretary Gary Locke said in New Delhi Monday.
   Locke, who is leading a high-tech trade delegation that includes representatives from 24 U.S. companies, said India has taken many steps to open its economy. But levies such as 19 percent on civil aircraft, 30 percent on pistachios, 26 percent on X-ray film and 50 percent on apples make it difficult for outside firms to do business there.
   He also cited as problems mandatory technology transfer requirements for telecom equipment, limits on foreign direct investment in key sectors and inadequate protections for intellectual property rights.

Locke

   'These measures explain why India is still ranked only 134 out of 183 countries on the World Bank's Ease of Doing Business Report.
   'India's market barriers may protect some domestic industries in the short term. But over time, these barriers will limit foreign direct investment and imports that can enhance innovation within Indian partner companies, and increase the standard of living for all of India's people,' Locke said.
   The Obama administration has targeted India, which is expected to achieve economic growth of 9.7 percent in 2010 when final statistics are tallied, as a key area of opportunity for its national initiative to double exports by 2014.
   In a speech to the Confederation of Indian Industry, Locke said U.S. companies are ready to help India achieve its ambitious goals for developing broadband, power, road, rail and transit infrastructure.
   Only 2 percent of India's roads are paved highways.
   Locke said U.S. companies simply want the same treatment that foreign companies and investors receive in America, touting the 5 million jobs that are directly tied to foreign businesses operating domestically.
   The trade mission is intended to promote U.S. technologies and services related to civil nuclear energy, civil aviation, defense and homeland security, and information and communications technology. The delegation will also make stops in Bangalore and Mumbai through Feb. 11.
   The trip follows President Barack Obama's visit to India last November, during deals worth up to $10 billion were finalized by U.S. companies.
   Locke visited a neighborhood grocery store in New Delhi that is using a mobile and Web-based marketing tool called GoConnect, developed by Mountain View, Calif.-based Intuit, designed to help India small businesses improve the way they communicate with customers. GoConnect was developed in both countries and the data is hosted in Intuit's data center in Quincy, Wash., the Commerce Department said.
   The delegation includes senior officials from the Export-Import Bank and the U.S. Trade Development Agency. Locke also met with Indian Minister of Commerce and Industry Anand Sharma. He complained to Indian officials about the country's restrictions in imports of solar-power technology, according to the Wall Street Journal.
   It is the first time a Commerce secretary has led a business development mission since 1997.
   The Journal separately reported that North Carolina Commerce Secretary Keith Crisco is also on a five-day trip to India scouting opportunities for Indian companies to locate operations in the state.
   India is growing as a U.S. trade partner. U.S. goods exports to India quadrupled from 2002 to 2009 to more than $16.4 billion. Through the first 11 months of 2010, U.S. merchandise exports to India rose 17 percent to $17.6 billion compared to the same period in 2009, according to the U.S. Commerce Department.
   The Bush administration signed an agreement with India several years ago to help develop its civil nuclear industry, and the United States last November reformed its export control laws to include India in the category of top allies eligible to receive sensitive equipment and technology.
   In the past two weeks, the Commerce Department removed the nine remaining Indian defense and aerospace companies from the 'entities list,' which restricts companies from doing business with the United States. Further changes to U.S. export control policy toward India will continue in the months ahead, he said.
   In related news, the Commerce Department announced the 30 members of the Civil Nuclear Trade Advisory Committee that will provide insight on new policies and other ways to expand exports of U.S. civil nuclear technology. The Obama administration is supporting nuclear energy as one of several energy alternatives that can help reduce global warming.
   The global market for civil nuclear technology will be $500 billion during the next 10 years, the department said.
   Committee members, including representatives from companies engaged in uranium mining, waste management, reactor design and transportation, will serve two-year terms. ' Eric Kulisch