US to press India for trade opening

The US considers India as "one of the most significant" markets for growth and will press New Delhi for promoting "open and transparent" trade and investment regime, a key American policy document has said.

"In South Asia, India presents one of the most significant markets for growth in US exports and investment," American 2011 Trade Policy Agenda said.

It said the US would continue "to use all available mechanisms - including the US-India Trade Policy Forum and the WTO -  to promote an open and transparent trade and investment regime in India".

The document said that India has numerous trade barriers which include prohibiting the entry of several US agricultural products into the Indian market or efforts designed to stimulate domestic industry at the expense of foreign competition.

Other "barriers range from prohibitions and restrictions on foreign investment in key sectors to inadequate protection and enforcement of intellectual property rights," it said.

The Policy Agenda prepared by USTR said that these barriers have to be removed to tap the potential for bilateral trade and investment.

Despite pointing out the trade barriers in India, the US conceded that its exports to to the Indian markets have gone up four-fold in the last 10 years.

In the first 11 months of 2010, US merchandise exports to India totalled $17.6 billion, up 17% from the same period last year. The bilateral trade was $36.5 billion in 2009-10.

The agenda also said that the US would continue to use all available mechanisms, including the US-India Trade Policy Forum and the WTO,  to promote an open and transparent trade and  investment regime in India.