Examining India's commitment to reforms: US on APEC membership

The US welcomes India's interest in joining the APEC forum but is examining its ability to "demonstrate" its commitment to economic reforms and liberalisation, a top Obama administration official has said.

Bruch Hirsh, Assistant Trade Representative for Japan and Korea, told lawmakers during a Congressional hearing that it is important for economies to demonstrate their policies are aligned with the approaches in APEC for trade liberalisation and economic reform.

Hirsh was responding to a question from Congressman Steve Chabot yesterday on India's membership of the 21-member grouping of Pacific Rim economies.

"Some members of the US business community have expressed doubts about India's role in APEC and feel that the US should refrain from proactively supporting India's membership," Chabot said and asked, "Could you comment on that?"

"Does the administration believe India has shown enough commitment to economic reform to warrant US support on India's membership?"

Hirsh replied: "We do welcome India's interest in joining APEC. But we are evaluating some of the considerations that you mentioned."

"We certainly will want to understand better how APEC fits into India's economic reform efforts," he asserted.

Asia-Pacific Economic Cooperation (APEC), a forum for 21 Pacific Rim member economies that promotes free trade across the Asia-Pacific region, is a consensus-based organisation.

"So it's important for prospective members to indicate their ability to work in that environment, as well as to demonstrate their commitment to free trade and open trade investment," Hirsh said.

"So we are certainly examining these criteria as we look at this question," he said.

During the hearing, Matt Salmon, chairman of the House Foreign Affairs Subcommittee in Asia and the Pacific, urged the Obama administration to support India's membership.

"I'd like to see additional partners in the Asia-Pacific region take advantage of membership in APEC, including India, the region's third-largest and fastest-growing economy. As APEC would greatly benefit from the inclusion of the next global economic powerhouse," Salmon said.

Ami Bera, the only Indian-American Congressman, also pushed for India's membership into the grouping.

He said that some people have suggested that the US should take a more active role in pushing for India's membership.

"I'd be curious as to what challenges and what suggestions that would push to include India, but then also, what India ought to be doing to make it more palatable to join APEC," he asked.