US keen to have investment treaty with India

WASHINGTON: The recession hit US on Tuesday said that it wants to enhance dialogue with India on key trade policy issues, including the bilateral investment treaty under negotiation.

US Trade Representative Ron Kirk will be discussing these issues with India's Commerce and Industry Minister Anand Sharma during a roundtable at the US-India Business council here tomorrow.

"USTR Ron Kirk is committed to enhancing the US-India trade relationship by fostering enhanced dialogue on important trade policy matters including a US-India Bilateral Investment Treaty," the USTR said in a statement.

The bilateral investment agreement would help protect private investment and develop market-oriented policies in partner countries, it added.

The two countries have been trying to bridge differences on the investment protection treaty. While India is willing to give 'post-stage' protection on private investment, the US wants 'pre-stage' benefit.

In simpler terms, if an American company suffers some losses even at the feasibility stage of an investment proposal because of change in government policies, it would like to be compensated.