India and the United States work together to capitalize on trade forum gains

In The News:

Officials are now looking to see what they can accomplish in this year's U.S. India Trade Policy Forum session (TPF).

Today's Article:

India-United States Trade Policy Forum (TPF)

The Forum on Trade Policy Forum between the United States and India The Trade Policy Forum is an important element in the promotion of both countries' efforts to increase their economic ties.
- This agreement is intended to expand bilateral trade and investment.
TPF's goal is to get its working groups involved in meeting regularly and addressing mutual concerns in a mutually advantageous manner.
Ministry of Commerce & Industry and GoI are the nodal agencies for TPF.
Bilateral trade between India and the United States has grown exponentially since 2005's founding of the Trade Policy Forum.
- Bilateral trade between India and the USA has reached US$119 billion by 2021-22. India is now India's largest trading partner .

Objectives

Facilitating trade and investment flows between India and the United States;
Transparency in the development and implementation of trade policies that conform to international obligations.
Facilitating technological collaboration and innovation by creating an environment
Promoting inclusive economic growth in India and the United States.

Focus groups

Four working groups identified

Priorities for both countries

The U.S. has prioritized greater access for Indian markets for medical equipment as well as digital trading .
India would like to be reinstituted as a beneficiary under the U. S.'s preferred market access program - the Generalized System of Preferences, (GSP).
- In June 2019, Trump removed India from the GSP program for not opening its markets sufficiently.
- The program expired on December 31, 2020 and must be renewed before India can be re-admitted.
- The programme covered approximately $5.6 billion in Indian exports to America, but the tax savings on these products was less at $190 million.

Background:

The 12 ^th Ministerial level meeting of the India-United States Trade Policy Forum, (TPF), was held in New Delhi on November 20, 2121.
This forum helped to overcome a mango trade hiatus caused by a pandemic.
- The forum concluded work on market access facilitation of mangoes, pomegranates and pomegranate arils.
Officials from both sides look forward to organising the next TPF in this context.

News Summary

Officials are now looking to see what they can accomplish in this year's TPF session in November, given the reemergence of Indian mangoes on the U.S. markets.

Highlights

US expected to be in the next TPF: Agriculture goods category
- The U.S. considers exporting ethanol as well as an associated feed ingredient, called DDGS, (Distillers’ Dried Grains With Solubles), to India, important.
- The US knows that India has sensitive issues when it comes to ethanol trade, as it has its own ethanol producers.
- The US is determined to find a way to complement these sources and to support renewable energy goals even if it meant that the market for ethanol would not be fully liberalized.
India: Expectations
- The export of water buffalo meat to the U.S. as well as table wine is a priority for India's agricultural trade.
- The Indian wild was reintroduced shrimp Exports to the U.S. are also a priority area for agriculture.
  - If protected sea turtle species are endangered, the law prohibits import of wild-caught shrimp and derivative products.
  - This is a technical obstacle to trade for India.

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