Commerce and Industry Minister Anand Sharma has raised the visa fee increase and offshoring ban by Ohio state with US Trade Representative Ron Kirk during the seventh ministerial session of the US-India Trade Policy Forum (TPF) in Washington, DC.
He also stressed on the Totalisation Agreement between both countries. “Protectionism kills growth and innovation. In order to ensure that we continue our high growth trajectories, we have to be strong to resist domestic calls and pressures to increase barriers to trade,” Sharma told Kirk.
Recently, the US had been resorting to a series of protectionist measures that could have adverse impact on India’s economic interest. While it passed a law to hike visa fee for H-1B and L1 categories, the state of Ohio banned outsourcing of jobs stirring up sharp and outrageous reactions from the Indian industry.
Sharma also highlighted the need to establish the Totalisation Agreement between India and the United States that would seek greater avenues and cooperation between the two in the services sector, stated an official communication.
Under the agreement, Indians who go to US to work for a stipulated amount of time would not have to pay social security tax in the US. At present, Indians working there on a short-term basis pay social security tax but are not entitled to enjoy the benefits of social security in return for the taxes.
“The dynamic growth of the Indian economy and its increasing importance to the United States as a strategic trade partner means that fostering solid connections between the United States and India opens valuable markets to American companies and supports job creation within the United States,” according to a statement issued by the USTR’s office.
During the meeting both ministers discussed the recommendations of the five focus groups on agriculture, innovation and creativity, investment, services and tariff and non-tariff barriers to trade that work under the TPF. Sharma sought greater cooperation between small and medium enterprises for greater employment opportunities and higher incomes.
According to the joint statement issued by the Indian embassy, both sides held comprehensive discussions on a wide range of issues, identifying areas for future constructive engagement between the two trading partners.
The meeting, which was also attended by commerce secretary Rahul Khullar and deputy US trade representative Demetrios Marantis, sought to focus on wide-ranging areas of interest to firms and workers in both countries, including agriculture, investment, services, and tariff and non-tariff barriers.
