Observing that trade has been an area of frustration in bilateral ties, the US has said that the door is open if India is prepared to bring a serious proposal to the table to address the issues related to trade and market access.
The US in November last year revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration’s tough stand on trade-related issues with New Delhi.
A senior State Department official said Friday that the US is proud to be India’s largest export market and most important economic partner.
“But we have struggled with regulatory issues that get in the way of the ease of doing business and market access for American companies and products,” said the official.
“Trade has frankly been an area of frustration in the relationship, but the door is open if India is prepared to bring a serious proposal to the table,” he said.
Despite intensive engagement with the Government of India for nearly a year, India did not assure the US that it would provide equitable and reasonable access to its market, which led to its termination from the Generalised System of Preferences programme, the official said.
“While we were pleased that the growing US exports to India, largely crude oil and LNG, led to a 7.1 per cent reduction in our bilateral goods trade deficit last year, many structural challenges in our trade relationship have yet to be resolved,” said the senior State Department official.
During the just concluded visit of the Foreign Secretary, while the focus was on strategic, defence and regional issues, in particular Pakistan and Afghanistan, but the visiting diplomat is believed to have been conveyed that the ball is in India’s court on resolving the trade related issues.