India-US talks on February 14: Crude oil imports to dominate agenda

Business Standard India-US talks on February 14: Crude oil imports to dominate agenda

Last year, both countries had given a wide berth to contentious trade issues in the 2+2 dialogue, instead focus on defence and foreign affairs

Economy & Policy: A pledge by India to reduce trade imbalance through greater crude imports, US firms’ concerns on the new e-commerce policy and retaliatory tariffs imposed by both nations will dominate the agenda on February 14, when officials sit down for the India-US Commercial dialogue.

Being held after a hiatus of a year, the annual talks will see Commerce and Industry Minister Suresh Prabhu discuss trade policy differences with US Commerce Secretary Wilbur Ross.

India expects Washington DC to push hard against the tough rules on foreign direct investments in e-commerce that have rattled US giants like Walmart.

Officials suggested the US was demanding a clear indication from India on reducing the trade deficit. The US is also in the process of terminating the Generalised System Preferences (GSP), which has allowed duty-free access for 3,500 Indian products to US markets. Officials added India might not put up a fight in this regard.

Last year, both countries had given a wide berth to contentious trade issues in the 2+2 dialogue, instead focus on defence and foreign affairs. The predecessor to the talks, the erstwhile ‘India-US Strategic and Commercial Dialogue’, had started in 2015. However, after two annual rounds, a decision was taken to carve out trade issues into a separate annual discussion — ‘India-US Commercial Dialogue’.

In the first edition of trade talks, Prabhu had gone to Washington DC in October 2017. But both the nations coming to repeated blows over trade issues throughout 2018 had stopped talks from materialising.