India-US Trade: Social Security Pact, Import Rules & Critical Minerals - USTR

New Delhi, Jan 13 (PTI) US Trade Representative Katherine Tai on Saturday said the American side has received information from India recently on the proposed social security agreement, and there is a lot of work to be done on the subject.

She also suggested India to keep the US in the loop and hold consultations with all concerned stakeholders while making decisions on import-related policy measures.

Tai, who is on a three-day visit to India for the 14th India-US Trade Policy Forum (TPF), said 2023 was a gangbuster year for the India-US relationship, and the two sides will develop a roadmap for enhanced cooperation in critical minerals, beginning with fact-finding exploration and establishing a common vocabulary.

The TPF was co-chaired by Commerce and Industry Minister Piyush Goyal.

Social security totalisation agreement was one of the key asks from the Indian side in the meeting of the TPF, as it will significantly contribute towards enhancing services trade between countries and help Indian IT professionals who temporarily work in the US.

India has submitted all the relevant data on its social security schemes, which was sought by the US to start negotiations on the agreement.

"Yes, the Indian government is in touch with our social security administration... We have received that information on the eve of the TPF.

"...We have the information and the ball is back in our court, but it's just landed in our court. So, there is a lot more work to do" to facilitate the conversation on India's proposal, US Trade Representative (USTR) Tai told reporters here.

When asked about the issues being raised by the US side about India's import management system for specified IT Hardware, Tai said they have asked India to hold consultations with them and other stakeholders on such matters.

Goyal in the TPF meeting has elaborated on India's objectives, including those related to national security.

"This is an area where we are hearing New Delhi's concerns about sensitivities with imports in these areas. We want to ensure that New Delhi creates a space for consultation not with us but with others, including all stakeholders, including our stakeholders," she said.

She added that the consultation would ensure that such decisions do not disrupt the regulatory environment, which is important for both sides.

"We are aware that an implementation plan is coming up. The point we are reinforcing with the government of India is to keep us informed. The more we know what to expect, the more opportunities we have to refer to you, the more effective your measures are going to be, the better off we are all going to be including the impact on the US and Indian economy," Tai said.

In October, India launched a new system of authorisation for import of these electronic goods to monitor their shipments, after the government's sudden decision to put in place a licensing scheme was opposed by industry.

"The focus of the conversation is as India is implementing the system that it is putting out, it remains committed to consulting with us not only on a government-to-government basis but also consulting, notifying stakeholders in the system. Invite feedback to ensure that what India does is actually addressing the concerns and doesn't hurt parts of the trade," Tai told reporters here.

She added that notice and process of consultation and feedback before implementation of import procedures and quality control orders is important for building confidence in the regulatory environment.

On increasing cooperation in the critical minerals sector, the USTR said these goods are critical to a sustainable and resilient economic industrial future for both nations.

According to the joint statement issued after the TPF meeting, the two ministers expressed commitment to launch future joint initiatives in certain areas, including critical minerals and trade in high-tech products, in which the US and India will develop a forward-looking roadmap for enhanced cooperation.

As part of the roadmap, she said, "We are going, to begin with fact-finding exploration and establishing a common vocabulary".

When asked about agri-related issues on both sides, the USTR said America is looking at greater market access for products such as almonds, walnuts, blueberries, and cranberries.

India has issues with regard to grapes, mangoes and pomegranates in the US market.

On India's concerns over delays in the visa process for Indian businesses, Tai said the USTR office facilitates the conversation on this subject with the parts of the US administration that are responsible for these issues.

Goyal in the TPF has highlighted challenges being faced by business visitors from India due to visa processing time periods and requested the United States to augment the processing.