India, US to sign pact to accelerate trade, investment

In view of the rapidly-expanding trade relations between India and US over the last five years, both the countries are now looking forward to further strengthening their ties with the signing of a new set of rules of commercial engagement.

Christened “Trade Policy Forum Framework for Cooperation on Trade and Investment”, the pact will be signed by Commerce and Industry Minister Anand Sharma and US Trade Representative Ron Kirk.

With bilateral trade clocking $65.9 billion last year, US is said to be India’s largest trade partner. Also, the country is apparently the leading source of Foreign Direct Investment into India and also India investment flow to the US is also steadily growing.

Sharma is also planning to hold talks with the Secretary of Commerce Gary Locke and Secretary of Agriculture Tom Vilsack. The India-US Trade Policy Forum was set up after the visit of Prime Minister Manmohan Singh to US in July 2005. The USTR and Commerce and Industry Minister are reportedly the co-chairs of this forum.

Five Focus Groups have been formed to discuss various trade policy issues like tariff and non-traffic barriers, services, agriculture, investment, creativity and innovation.

The India-US Private Sector Advisory Group (PSAG) consisting of prominent trade personalities from India and US would be meeting on March 17. The PSAG came into being in Sep 2007 to offer strategic recommendations and insights to the Trade Policy Forum.

Sharma, is scheduled to visit New York on March 19, to hold meetings with US industry including the Board of US Council for International Business and the India Business Forum.

During Prime Minister’s visit to Washington last November, a new India-US Economic and Financial Partnership was formed to support bilateral engagement and understanding on economic, financial and investment-related issues.

The Partnership will congregate at the Cabinet level once a year, both in the US and India on rotational basis. Working groups and sub-cabinet level meetings will be held all through the year to hold further discussions on specific economic policy areas.

The India-US Economic and Financial Partnership will be formally launched by Finance Minister Pranab Mukherjee and US Treasury Secretary Timothy Geithner in New Delhi on April 6.