- US to review its trade ties with its trading partner, in the backdrop of country’s surmounting trade deficit.
- A “country-by-country, product-by-product” report will be prepared in 90 days that would form the basis of further measures that the administration would take to reduce the country’s trade deficit.
- The report to identify every form of trade abuse and every non-reciprocal practice.
- The review will be to assess whether a deficit is being caused by cheating, specific trade agreements, lax enforcement or World Trade Organization rules.
U.S. issues of concern with India:-
- Inadequate protection of intellectual property,
- State subsidies and tariff and non-tariff barriers.
- Ban on animal-tested cosmetics and restrictions on dairy products and alcohol
- Opaqueness in its non-tariff regulations
- Export subsidy programmes in several sectors .
- Trade in energy
- Trade in generic pharmacy and defense.
- Movement of service professionals in and out of U.S.
- India is the ninth biggest trading partner of the U.S. and had a trade surplus of around $26 billion with the U.S in goods trade alone last year.