India and the US today agreed to set up a working group on trade policy as part of the efforts to bring a thaw in the trade relations between the two countries, ahead of the World Trade Organisation ministerial meet at Doha.
In addition, the US went half-way on a long standing Indian demand by restoring duty free imports of 42 items in the product categories of jewellery, leather and carpets.
More items would be included in the duty-free import list after India amends its patent laws, say senior commerce ministry officials.
At the same time, the US included a veiled threat, when officials maintained that failure to clinch a new round of trade negotiations at Doha would be to the detriment of developing countries.
