India-US Trade Policy Forum

Published: 20th Jan, 2023

Context

Recently, the 13th Ministerial-level meeting of India – United States Trade Policy Forum (TPF) held in Washington, DC, on January 11, 2023.

About

What is the India-US TPF?

About:
- The India-US TPF aims to activate its working groups in the fields ofagriculture, non-agriculture goods, services, investment, and intellectual property to meet frequently and address issues of mutual concern in a mutually beneficial manner.
- The idea is to deliver tangible benefits to both countries by resolving outstanding market access issues.
Highlights of the Meeting:
- While the two sides appreciated therise in bilateral trade in goods and services (which reached ~160 billion USD in 2021), they also recognised that for economies of their size, significant potential still remains unfulfilled.
- The US welcomed India’s participation in theIndo-Pacific Economic Framework for Prosperity (IPEF).
  - Both the countries have like-minded views about the efficiency of IPEF for continued growth, peace, and prosperity in the Indo-Pacific region.
- The Ministers welcomed the finalization of the Turtle Excluder Device (TED)design with the technical support of the National Oceanic and Atmospheric Administration (NOAA).
  - The TED will help in minimizing theimpact of fishing on sea-turtle populations.
- Anew TPF Working Group on Resilient Trade was launched to help the officials deepen bilateral dialogue on a range of issues. Till the next TPF Ministerial meeting, it will focus on:
  - Trade facilitation
  - Promotion oflabour rights and workforce development
  - Circular economy; role of trade in environment protection

How are India’s Trade Ties with the US?

India-US bilateral partnership today encompasses a whole host of issues including the response to Covid-19, economic recovery post-pandemic, theclimate crisis and sustainable development, critical and emerging technologies, supply chain resilience, education, the diaspora, and defence and security.
The US is India’s largest trading partnerand most important export market. It is one of the few countries with which India has a trade surplus. In 2021-22, India had a trade surplus of USD 32.8 billion with the US.
Although India and the US have quite contradictory responses towards the Russia-Ukrainecrisis, the two have underscored their commitment to continue to build on the momentum of recent years and not lose sight of the larger strategic picture.

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