India

The Indian government in comments submitted to the Office of the U.S. Trade Representative last week defended its digital services tax as necessary to “ensure a level-playing field,” arguing it does not discriminate against U.S. companies.

While the “impetus” behind U.S.-Indian trade talks remains, New Delhi has taken steps over the last year that have complicated efforts to strike a deal, a senior State Department official said this week.

The new group, which includes the Association of Equipment Manufacturers and the National Foreign Trade Council, is an expansion of the Alliance for Fair Trade with India.

After President Trump’s visit to India last month revitalized trade talks between the two countries, efforts to curb the economic harm caused by a global pandemic have changed the bilateral dynamic, U.S.-India Business Council Vice President Amy Hariani said this week.

India should establish “clear parameters for government access to both personal and non-personal data, grounded in rule-of-law processes that protect the privacy of citizens and business confidence,” they write.

The U.S. on Wednesday appealed a World Trade Organization compliance panel with India over countervailing duties to the non-functioning Appellate Body it hobbled, blocking India from retaliating against alleged U.S. non-compliance indefinitely.

The appeal is unlikely to be heard by the Appellate Body before Dec. 10, when it is expected to stop functioning due to a lack of a quorum.

A World Trade Organization compliance panel last week found the U.S. had appropriately labeled an Indian minerals corporation as a public body despite India’s claim that the Commerce Department again misapplied the controversial standard when it issued new final determinations following a 2014 Appellate Body report.

The U.S. is expected to send deputy-level officials following last week's meeting between U.S. Trade Representative Robert Lighthizer and Indian Commerce Minister Piyush Goyal.