India

The U.S. and India should set an ambitious goal for their trading relationship to better manage trade tensions between the two countries, the head of a major business group tells Inside U.S. Trade.

The U.S. and India are at a “pivotal juncture” in their trade relationship, Deputy U.S. Trade Representative Jeffrey Gerrish said on Thursday, acknowledging the possibility of additional U.S. trade actions – including a Section 301 investigation – if New Delhi moves ahead with policies the U.S. has deemed unacceptable.

A delegation from the Office of the U.S. Trade Representative is slated to travel to India next week to resume trade talks that fell apart earlier this year, according to reports and sources.

India, South Africa and five other countries have proposed that World Trade Organization members consider additional flexibilities for developing members to meet their notification obligations, arguing that, given the difficulty of meeting current commitments, no new obligations should be considered.

Pompeo: “We said we’re going to do our best to make sure that all the right people get in all the right places and work through these problem sets so that we can get out of this and get on with the business of growing each of our two economies.”

India last week proposed exemptions to restrictions on fisheries that would apply to all developing and least-developed World Trade Organization members and allow them to subsidize some fishing activities that occur up to 200 miles offshore, without restriction.

President Trump last week signed a proclamation to terminate Generalized System of Preferences eligibility for India, a move opposed by prominent business associations and many on Capitol Hill who have called for further talks between the two governments.

India has re-elected Prime Minister Narendra Modi, a move analysts say might not bode well for its bilateral trade relationship with Washington.

An upcoming shakeup of India's government could be the reset that is needed to reshape New Delhi's bilateral relationship with Washington, former officials from the Office of the U.S. Trade Representative and other agencies said on Monday.