US federal body begins hearing on Indian trade policies

WASHINGTON: A federal body today began a hearing on the impact of Indian trade policies on US businesses wherein American bodies and advocacy groups slammed India for its trade practices, alleging they hit their jobs and business.

About two dozen speakers representing various business and advocacy groups are expected to testify over two days before the US International Trade Commission (USITC), which is holding the hearing at the request of powerful Senators.

USITC has been asked to submit its report by November. While majority of the American groups slammed India's trade practices, with one of them accusing India of being an "international outlier", several businesses and advocacy groups came out in support of New Delhi's trade policies, including those related to the contentious intellectual property and local content manufacturing.

Many, including eminent international economist Arvind Subramanian, cautioned USITC against recommending taking punitive measures against India, given the strategic ties between India and the US.

However, representatives of the majority of American organisations continued to slam India.

"In order to better the trading relationship with the United States, and to encourage its own local industry, India must work to reduce barriers to trade and market entry," Brian Pomper, Alliance for Free Trade with India, said in his testimony.

Across multiple sectors, the theme is the same: the Indian government provides ceremonial acts to "prove" it is working on the continued liberalisation of its economy, but the results do not change, he said.

"India has a significant way to go to become a responsible stakeholder in international commerce. While other countries continue to work towards greater liberalisation and free trade, India remains highly protectionist over a range of industries. In order to better the trading relationship with the United States, and to encourage its own local industry, India must work to reduce barriers to trade and market entry," Pomper alleged.

While studies have shown the importance of IP to fostering jobs, stimulating economic growth, and creating knowledge economies, the Indian government continues to disregard protecting intellectual property, said Mark Elliot, of the Global Intellectual Property Centre, of the US Chambers of Commerce.