US Committee says Indian policies are discriminating against US exports and investments

The Dollar Business Bureau

The influential House Appropriations Committee in its report accompanying the annual Appropriations Bill 2018, said that several policies adopted by the Indian government to boost its economic growth, protect domestic manufacturing, actually discriminated against US exports and investments.

'India, while striving to improve its economic growth, has been enacting a series of policies to increase domestic manufacturing and protect domestic industries and agricultural production that discriminate against US exports and investment,' the Committee said.

The report was prepared in conjunction with the US Commerce, Justice, Science and Related Agencies Appropriations Subcommittee that has several agencies under its control that combat gangs, drug trafficking, violent crime, terrorism espionage, financial fraud; enforcing trade laws; exploring science, space; managing fisheries etc.

The Appropriations Committee noted the importance of the India-US bilateral trade and investment but expressed concerns on the intellectual property protection standards and India's localisation measures.

The Committee also cited examples such as the unfair treatment meted out to US exports of boric acid, the smuggling of US almonds and illegally rebranding them and a host of other market issues. It took cognizance of the efforts of the  United States Trade Representative (USTR) in raising these issues with the Indian government. 

The Committee advised the USTR to continue to pursue FTAs with additional countries to further trade from the US. 

Reflecting a change from its earlier stand, the Appropriations Committee expected that the 'USTR will coordinate and implement a comprehensive and vigorous strategy to address the United States' trade imbalance with China.'

It advised the USTR to maintain skilled personnel on its staff who could translate the Chinese trade documents into English given the challenges associated with enforcing US trade laws with China.