Rajeev Kher discusses totalisation pact with US Trade Representative Wendy Cutler

NEW DELHI: India pitched for a totalisation pact with the US on Wednesday to protect interests of Indian professionals who contribute more than $1 billion every year to that country’s social security system through federal taxes without getting any benefits in return.

Commerce secretary Rajeev Kher flagged issues India would like to take up at the next meeting of the trade policy forum with acting deputy US Trade Representative Wendy Cutler in Delhi. Cutler is in India to do groundwork for the forum. The issue may also come up during Prime Minister Narendra Modi's meeting with US president Barack Obama at the end of September.

Kher said US social security policy discriminated against Indian workers in the US who ended up losing their contributions due to discrepancies in the visa and social security regimes. Although the US has entered into totalisation pacts with 24 nations, an agreement with India has been on hold for many years. India had signed a similar agreement with Canada in 2012. Totalisation agreements seek to eliminate dual social security taxes.

Kher sought an update on reauthorisation of the Generalized System of Preferences, which expired in July last year and is awaiting Congressional approval. Besides, market access issues of agrarian products was also discussed during the inter-ministerial meeting, apart from intellectual property rights and manufacturing investment.