WASHINGTON; D.C.: India was named as one of the countries which are considered to have a pattern of unfair trade practices determental to U.S trade interests.
The Omnebus Trade and Competitiveness Act passed by the Congress last year required a list of such countries by May 30. Under the act the Congress sets a tight frame work for negotiations with countries cited in the act. Penalties, tarrifs and sanctions could follow if the trade barriers are not lifted expeditiously.
India’s ‘web of market access barriers’ is seen as a impediment to the U.S. investment in that
country.
US.Trade Representative Catla Hills, told pressmen that India’s barriers to trade and service, specifically the closure of India’s market to foreign insurance companies were amongst the investment measures that prohibited or burdened foreign investment.
Japan and Brazil are also included in the list. Japan is the main target because it had a trade deficit of $55.4 billion last year. India’s trade deficit was $671 million.
The U.S. has also included India in the ‘priority watch list’ of the most important violators of intelectual priority rights or copyrights. With India are China, South Korea, Tiwan, Thialand, Saudi Arabia, Brazil and Mexico.
At the press conference Carla Hill said that the violation of these intellectual property rights was harmful to the economic interest of U.S. and ‘undermines the creativity investment and invention that are the mainsprings of America enterprise.’
The United States is the largest investor in India. It accounts for over 25% of the foreign investment in India. Japan, at number 2 accounts for less than half of the U.S. investment in India. The U.S. however, feels that its investment possibilities are far more.
Indian Commerce Minister, Dinesh Singh said, “we regard this law and action under it as totally unjustified, irrational and unfair.”
Indian businessmen have also reacted with concern about this action.
Article extracted from this publication >> June 2, 1989
