We can chart relationship despite China: US Comm Secy

China’s growing dominance in global trade is definitely a matter of concern for both the US and India. And it will severely affect ties between the US and China as well as India and China. However, visiting US Commerce Secretary Gary Locke, in an exclusive interview with Business Standard, said: “Despite such a situation, the US and India have an ability to chart their own bilateral relationship and make all efforts to grow. Bilateral relationship between India and the US is the best and there is ample scope to grow it to new heights, especially when President Barack Obama and Prime Minister Manmohan Singh enjoy cordial relationship.”

On the relationship with China, the US is more concerned about the trade imbalance. “US wants that its companies will be able to sell more in China. At present, due to restrictions, they are not able to do so. Trade barriers put up by China are creating more imbalances and we expect they would be eased out,” Locke said. He admitted that this was also affecting India. “However, it will not desist India and the US from increasing trade and investments,” he noted.

Locke’s statement is crucial, given the fact that the $434-billion trade between India and China is quite lopsided with $262 billion in favour of the latter. As for India-US trade, the country is US’ 14th largest trade partner. American exports to India in the first six months were worth $14.6 billion — up 14 per cent compared to the corresponding period of the previous year.

Removal of restrictions
On the removal of export restrictions, Locke reiterated that it was high on the US President’s agenda and there is a possibility of an announcement in this regard. “The US is moving to loosen controls on many commonly available high-tech goods,” he said.

On furthering bilateral trade and investments, the US commerce secretary asserted that the opportunities are unlimited. “I do not want to give you any numbers here, but there is huge potential which can be tapped by both the countries. India’s booming economy, rising middle class, its programmes to boost modernisation and increase standards of living offer ample opportunities for the US to further increase trade and investments. US sees bigger opportunities in India’s infrastructure, clean energy, agriculture, health and medical technologies apart from defence and military sector. On the other hand, India can tap similar opportunities in the field of information technology & communications and clean energy in the US,” Locke informed.

Some concerns
But he said the US had concerns over India’s policies in the field of financial services, clean energy and telecom sectors On clean energy, Locke said: “We are concerned that there are some requirements that various clean energy components, whether wind turbines or solar equipment, must be largely manufactured in India.”

The commerce secretary acknowledged Indian industry’s concerns about the recent increase in H-1B visa fees. However, he said it would be up to the US Congress to take any remedial action.

On differences over Doha talks, Locke said the US supported an early conclusion of the Doha round. “Developing countries are pressing for more access for agricultural products in the US. There are fast-growing developing countries, like China and Brazil, and there other categories of developing countries. Similar yardsticks cannot be applied for these two sets of developing countries.”